EC Coiling US Markets

In this week’s Dirty Dozen [CHART PACK]  we look at spring loaded indices with evidence tilting in favor of a coming break higher… we follow that up with bitcoin sitting at a major inflection point before diving into inflation surprises and related flows, along with what that could mean for the EURUSD. And then we check out a demographic housing boom graphic before finally ending with a high growth residential interior product distributor trading for cheap, plus more…

Let’s dive in. 

  1. The New York Stock Exchange Composite Index (NYAclosed at an all-time high last week. Those highs are being confirmed by an upward marching ADL. That’s not bearish…

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  1. The major US indexes have been coiling and building a springboard. NYA is likely leading the way. Odds favor breakouts to the upside soon.

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  1. I’ve been keeping a close eye on the Qs since they looked the most vulnerable to a breakdown over the last few weeks. But… in another piece of bullish evidence, its short-term breadth turned up last week. Further positive follow-through in the coming days would give a decent breadth thrust confirmation of the path of least resistance up (CCMP).

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  1. Some amusing videos of mania from the Miami Bitcoin conference were circulating online over the weekend (link here). That’s not exactly the type of crowd sentiment you want to see if you’re long crypto. 

Bitcoin (BTC) itself is looking precarious. It’s formed an o-i-i breakout wedge pattern on the weekly and daily charts. The technicals don’t look good and my bet is we see BTC eventually revisit the 20k price level. Maybe it breaks down right away or maybe it rebounds first before rolling over again. Either way, this type of sentiment needs to be reset for a more durable advance.

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Disclaimer: All statements are solely opinions and are for educational purposes only.

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Alpha Stockman 3 months ago Member's comment

Good read, thanks.