Tuesday Interest Rates & the US Dollar
Disclaimer: All charts and comments are intended for education and discussion purposes only. No investment recommendations are being offered. Please do your own research and take responsibility for all investment decisions that you make. Questions and comments related to this post are encouraged. | MON - Sector Strength | TUE - Interest Rates | WED - Market Breadth | THU - Commodities & Currencies | FRI - Market Sentiment | SAT - Bullish Percents | About | contact: HeadlineCharts@gmail.com |
Before looking at interest rates... Check out the bullish percent of the financials shown below. It is now within the extreme oversold 20-to-30 level.
Below is a monthly chart of the financials with the bullish percent indicator at the top. This indicator rarely gets so oversold, and the last time it was this low was the spring of 2000. This bp level presents an opportunity, but before jumping in right away, note the monthly sell signal registered by the monthly MACD.
The 2-Year and the 5-Year are now below their 40-week moving averages and approaching support levels. The 10 and 30-Year rates are just above the 40-week averages. Breaks below these averages might suggest that growth is slowing and the debt crisis is choking the economy. Maintaining above these levels would indicate to me that the debt problems will pass (for now) and that stocks are in a healthy pullback representing opportunity for investors.
