Markets want their equities back.
Updated
The market is longing equities, they miss them so much... Perhaps there are traders out there who actually long equities right now.
And maybe they have their reasons...
Yields are showing the first signs of exhaustion. Their chart by itself confirms it.
In the main chart above, we see support from the 200EMA (from 2M chart like before)
RSI went oversold (penetrated it's ATR channel to the downside) and is now back inside it. This is bullish.
This year stochastics were absolutely glued together, it doesn't get any tighter. Now they are ready for an upwards swing.
But wait. Not all is good.
The "true" SPX chart (SPX*US10Y) is showing it's first signs of weakness.
So we have reached the point of "diminishing returns". Any increase in equities is not providing wealth.
Like before, RSI, Stochastics and KC don't help.
SPX is showing signs of strength for the following months.
While I expect a degree of weakness in equities, not all hope is lost.
In the meantime, I expect horizontal movement for equities, and some probable growth.
Beware, for the cake is still a lie.
A couple of extra charts:
The chart I added above, the point we missed the trendline was in December 2018.
In December of 2018 was the time when Put/Call ratio and VIX took separate ways.
And what did equities do after this point in time?
PS. With all that conspiracy, I wander why I don't wear a tinfoil hat... yet.
Tread lightly, for this is hallowed ground.
- Father Grigori
And maybe they have their reasons...
Yields are showing the first signs of exhaustion. Their chart by itself confirms it.
In the main chart above, we see support from the 200EMA (from 2M chart like before)
RSI went oversold (penetrated it's ATR channel to the downside) and is now back inside it. This is bullish.
This year stochastics were absolutely glued together, it doesn't get any tighter. Now they are ready for an upwards swing.
But wait. Not all is good.
The "true" SPX chart (SPX*US10Y) is showing it's first signs of weakness.
So we have reached the point of "diminishing returns". Any increase in equities is not providing wealth.
Like before, RSI, Stochastics and KC don't help.
SPX is showing signs of strength for the following months.
While I expect a degree of weakness in equities, not all hope is lost.
In the meantime, I expect horizontal movement for equities, and some probable growth.
Beware, for the cake is still a lie.
A couple of extra charts:
The chart I added above, the point we missed the trendline was in December 2018.
In December of 2018 was the time when Put/Call ratio and VIX took separate ways.
And what did equities do after this point in time?
PS. With all that conspiracy, I wander why I don't wear a tinfoil hat... yet.
Tread lightly, for this is hallowed ground.
- Father Grigori
Note
Gap vs WaxNote
The violation of this trend marks the end of QE. This shows the true effect. I hope you all understand it.With Green and Red arrows, I have marked the points I used to draw the rays.
These long-term rays, prove as significant resistance.
Hitting one of them, was a fundamental reason the Black Monday was so severe.
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