The (4) Four Charts I am watching closely today
#dxy #us500 #us02y #us10y #vix
Pull these charts up on your radar. They are key. With today’s spike on the VIX, we may see key resistance and support lines break. If any one of these critical trendlines/levels are broken, much more caution is warranted on the long side. Let’s quickly run through the charts I am observing.
DXY - A break to the upside of that macro uptrend (with confirmation on the daily) indicates a stronger dollar. A stronger dollar price must be calculated into current stock prices, weakening the current stock momentum.
US500 - Testing that Macro Uptrend as support. A break below may indicate further downside (pending FED language following FOMC press conference).
US Treasuries - Both the 10 year and the 2 year are pushing up against resistance. A break to the topside would indicate that the FED will continue its aggressive rate hikes strategy to tackle inflation. The dollar will follow with strength. The markets will depress even further. Crypto will follow. Treasuries seem to indicate that the FED will continue its aggression against inflation. We must pay attention closely to those purple lines/levels.
Also to note, Bitcoin is up against its 200-week ma. I don’t see that be broken immediately without some setback prior. The Bitcoin price battle with the 200 weekly ma may be the earliest indicator we have to what might follow in the next few days/weeks.
As always, be cautious. Don’t bite too hard on these last few weeks of bullish price action. Dollar-cost average yourself in. Place those stops. And best of luck to you all!