Copper is trading at its best level since March 2013 and has rallied 7 of the last 8 months. Be aware of the 61.8% retrace of the decline from the 2011 high at 3.6130 for possible resistance. Considering that ‘everything’ is going up against the USD, this level could prove important from a multi-asset perspective.
USDOLLAR reversed higher today after undercutting the September low. Importantly, price reversed at the median line…just as it did in September. Divergence with RSI attends the low, as it often does at important turns. Today was also a bullish engulfing pattern. This occurs when price opens below the prior close and closes above the prior open.
Gold tagged proposed resistance on Friday and dumped today…beautiful. Price is quickly approaching the long held support near 1780. This level is an important parallel and the lower channel line from the bearish channel off of the August high. I’ll be paying close attention to 1780 for reversal evidence.
Neither SPX or the Nasdaq have broken above their reversal day highs from last week (11/9). What’s more, SPX has reversed yet again from the line that connects highs since 2018. Don’t forget that this line crosses major pivots for the last 88 years (monthly chart is below). U.S. equity valuation is at a peak as well (see 2 charts down).
DXY continues to trade at/just above a major long term level. Nothing has changed. This is support until broken (daily closing basis at least). The UUP (see below) warns that last week’s drop is a trap. The red bars on the UUP chart show when price closed at a 52 week low with volume at least as high as it was last week (1.8 x the 13 week average). Every instance except one (highlighted in yellow) was a capitulation low. Stay tuned.
EURUSD traded into resistance as early polls closed, tanked to its lowest since 7/24 and then ended the day unchanged. So 2020. Bottom line, resistance was hit so I favor the short side. Weakness below 1.1700 (most recent high volume level and support in August and October) would warrant taking a shot.
We got the bounce as suspected and Nasdaq futures are approaching proposed resistance near 11415. I’m on alert for a turn lower from that level.
Another month is in the books and SPX continues to trade ‘heavily’ under the its ‘meridian line’. An inside month formed in October. Recall that September was an outside bearish month (see the close up view below). Of note is XHB (homebuilders), which made a monthly volume reversal in October (see below). Is this one of the last segments of the market to put in a top?
Bitcoin made a volume reversal today. The high was right at the top of a channel too. The longer term chart is extremely bullish but price could drop to back to 10,000 or just below and still be bullish on a longer term basis. Near term, the BTCUSD reversal lower doesn’t bode well for ‘risk assets’ in general. No, BTCUSD is not a ‘safe haven’. It’s been moving with everything else all year. The ONLY safe haven in the current environment is the USD (maybe Yen and US treasuries too).