Goal: Analyze and showcase some charts from the conventional technical analysis or DeMark perspective that may indicate a reversion of current trend and or continuation. Also look out for this Thursday when @Jack Farley and I go through charts.
So let's get it started.
10's hit the ominous 1.37 area on a short term basis and have come back below the prior 1.35% support area.
Euro hit that important 1.18 support area and has held so far
Stocks continue to trade up in LALA land. Nothing seems to matter in the medium term as breadth starts to improve.
On thing to keep in mind though is small caps are looking kind of weak...
Seems like Biotechs need to hold here for market to remain strong.
From a DeMark perspective, I'm seeing the price action as very bullish still. You really don't want to see it trade much lower from here for that to be invalidated.
XLE is trading slightly weaker, perhaps pricing in some of the bullish inflation sentiment. I don't see the price action as very bullish in the short term.
Banks kind of look like a short from here... but they could just be responding to the move in the yield curve. Question is how long does that move stay? Are higher yields going to come?
Let me know your thoughts, especially on the later point. We are seeing regional banks get hit this morning because of the 10 year so if we can figure out a way to get the yield curve call right, there might be some good plays on the regional banks both on the long or short side. Where are you guys at on this?