Rising wedge breakdown
|And so it came, S&P 500 was acting weak into NFPs (low figure, and forget not two serious prior months‘ revisions), and put up a good fight for only a while then. Trying to come back in spurts, the most predictably reacting markets were as I wrote, the dollar and yields. Gold (rather than silver) rocketed higher without much of a pullback.As I‘m discussing in Saturday‘s extensive video, USD and yields moves are essential, so how do these fit the relaxing financial conditions?
How does it fit the inability of great earnings to push up S&P 500 on a lasting basis? Troubles with financials? Is the USD recovery biting after all? Why didn‘t stocks though do better when the dollar tanked Friday (as I expected it to)?
NFPs significantly underwhelmed, private payrolls – and unemployment rate rose too while participation rate ticked lower. Yet what was odd and I mentioned it to clients first, was that interest rate sensitive plays didn‘t rally following the data – there was some improvement since, but fizzled out across all equities – and thus the rising wedge break was born.
Teaser – is it about rates differential, or what‘s next about to happen with USD? Economy tanking?
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.