The following video provides technical analysis of the US stock market, Treasury Bonds, $VIX volatility index, Gold, & Commodities. Silver or Gold level access initially required.

    • The sell signals on the major stock indexes that triggered on the intraday (60-minute charts) on Monday are still intact for now
    • However, the potential sell signals on the more significant daily time frame (bearish engulfing candlesticks on SPY & QQQ) have yet to be confirmed with a solid break and/or close below Monday’s lows
    • Treasury bonds have broken down below the recently highlighted triangle patterns (bearish for bond prices, bullish for yields)
    • Until & unless today’s breakouts in bonds fail, that doesn’t help to support the case for a correction in the stock market
    • The breakout in the 10 & 30-year Treasury yields may also be an indication that the market is starting to take the powerful rallies in most hard & soft commodities seriously as a sign that years of artificially low rates may finally be causing inflation
    • Several sentiment indicators including various put/call ratios, volume indicators, and more recently the $VIX volatility index are signaling an increasing likelihood of a substantial & potentially swift correction in the stock market
    • The Euro remains in an uptrend with a sell signal still pending a solid break below the primary uptrend line on the /E7 (Euro futures) 60-minute chart
    • A sell signal in the Euro would help to support the case for a correction in the stock market as the two have had a tight positive correlation since the Nov 2nd major reactions lows on both
    • /GC (gold futures) have just hit my pullback target posted in the comment section below Monday’s post (click here to view)