Things continue to weaken, tightening my stops on all indexes except Copper, Gold and Transports. Looks like the SPX will soon break down out of bearish rising wedge.
Those of you who have been following me for awhile have seen my correlation between the
TNX and the equity markets of late, particularly when it comes to marking short to intermediate term tops. Well, the TNX might have completed its first 5 waves up as it turned down several days ago (or it could still have one more minor push that could last a week or so). It had built up quite a bit of of negative divergence and I was waiting for the signal to go long TYD. I’m looking for treasury yields to bounce today and will begin to scale into a small position in TYD as that occurs. But once again, this could also be signal that wave [iii] has ended and wave [iv] of intermediate wave (1) might be commencing.