Bearish Charts in Equities About to Be Joined by Bearish Developments in Bonds and Currencies
We are just on the verge of additional breakdowns in some of the important "risk tell" charts in the bond and currency markets.
With that dynamic acknowledged, I will note that there certainly are technical breakdowns that have occurred and more that may be on the verge of occurring today (barring a major change in the action heading into the close today). The chart of the S&P e-Mini futures is shown below. Notice that the minis have closed out their 240-minute bar below the "correction support" at 1,420.75. Pay attention to the S&P cash support level given later in the report as we head into the close to see if the breakdown in the Nasdaq is confirmed. Also, keep in mind that there's Apple (NASDAQ:AAPL) news today, a Fed announcement tomorrow, and Apple earnings on Thursday. Things can certainly change – especially with that line-up of potential catalysts. For my part, however, rather than focusing on the news itself, I will be monitoring all of the critical technical levels in all of the asset classes (bonds, stocks, commodities, and currencies).
Click to enlarge
Before I get into my usual look at bonds and currencies this week, I want to quickly touch on some observations I have on market internals.
Volume: Bearish / neutral. Volume definitely picked up on Friday during the sell-off. It was noticeably higher than the 10-day moving average and clearly trumped any recent spikes. Today, however, it's not alarmingly high (yet).
Click to enlarge
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter