S&P 500 didn‘t decline below Friday‘s lows, and opening bell‘s selling was steeply reversed within one hourly candle, making the posture neutral – just neutral as neither side is having success moving prices much this week (before earnings). Still, it was possible to read the intermarket, sectoral flows and even though swing trading outlook hasn‘t changed. Doesn‘t it though look as part of a bottoming process, provided that certain additional condition(s) are met?That‘s the question I answer in the premium part. We‘re having both the expected consolidation in yields kickin in, it‘s making the dollar pause its ascent, and that allows for China trades to move a little higher (all within their consolidation of the steep ascent during the golden week – these stocks in the current post-election environment must be considered as sideways, not yet ready to embark on a solid uptrend).Let‘s examine VIX and yields as they stand now – keep paying attention to Bitcoin moves too.
Let‘s move right into the charts (all courtesy of ).
Gold, Silver, and Miners
The short-term direction is up in precious metals for today – let‘s see how much more basing will be required, I think the bulls truly need more time to start running again, and once yields with dollar turn up, gold and silver will notice. Summed up, I don‘t trust the current upturn in precious metals to last in the way that yesterday‘s move alone would indicate.More By This Author:Buy The Blood In The Streets?My SPX Support – Now WhatSPY Seeing Some Trouble
Bottoming Signs Or Not
