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 |
Last week we mentioned that the distress in the market was showing in low TBill rates, and they needed to break out in order for stocks to break out as well. On Monday, TBill rates made a strong move that works strongly in favor of stocks.
Above is the broader view of TBill rates, and they look like they are headed to about 3.5% where there is horizontal and down-trendline resistance.
Another sign of distress is when Treauries outperform top quality corporates. The relative strength ratio pointed to a serious problem back in July when it plunged. Now it is starting to show some strength which means confidence is returning towards corporates. If it continues to move higher it favors stocks as well.
