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 |
The bond market is not any more optimistic this week than last. Rates ticked even lower across the curve from already depressed levels. These rates are broadcasting bond investors' belief in a slow economy and lower Fed Funds rates ahead. These low rates mean the bond market offers little competion to stocks, but such low rates usually indicates a problem which means caution is called for regarding equities.
The US Dollar continues to tick lower and lower which continues to favor stocks tied to commodities, energy, materials, gold, etc. That is, unless the world economy starts to slip, and then the bottom could fall out from under these stocks.
Keep watching this index for clues about the direction of the equity market. The RSI is showing a negative pattern of lower highs, but it hasn't broken down into oversold yet so it holds out hope that the index will recover. The first step is break above the 40-week.
