The Swiss team put in a solid report below. Across multiple instruments and markets we have choppy conditions that signify distribution rather than meaningful tops and bottoms for the moment.
“Again, there is no top without distribution and/or a top formation, and as the May 22nd top was a high momentum top, we have neither any kind of top
formation in place nor do we have any non confirmation in our breadth/trend indicators”.
I’d certainly go with that statement as summing up where we are at present.
I’d add the (official) inflation adjusted dow is approaching her 1999 resistance.
The unofficial inflation adjusted Dow is even worse.
This remains a crisis of debt in the developed markets and so it is that fixed income remains the key asset class for direction in these markets. Last week fixed income yields jumped up on news the Fed may be reducing its support for the market. Japanese bond yields have shown great volatility and needed BOJ unscheduled intervention. Spain’s yields also jumped up over the course of several days. High yield corporate credit yields surged last Wednesday. Credit remains a key directional clue to equity markets. Where credit goes the equity markets will follow it seems as the correlations hold.
I’m playing catch up as i’ve been away so I’ll save my comments for the forum pages when i’m properly up to speed on the inter market issues.
Without more delay here the report.
Also here the latest Bullion weekly technical report from Commerz. Near term the team are bullish across the asset class but remain neutral on the medium term.The physical demand story continues unabated.
BullionWeeklyTechnicals28052013
It might be worth, at this point, recalling the inflation adjusted gold chart. In a world of awash with paper and paper confidence again, hard assets appear very cheap, on a relative basis.
All the best
Rich
(14 votes, average: 5.00 out of 5)
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