Friday, December 4, 2015

Big Moves in All Markets in the Intermarket Grid Dec 3: S&P, Gold, Crude, Bonds, Dollar, Euro

The one-two punch of Mario Draghi’s ECB announcement with the Fed’s “we’re going to raise rates in December we promise!” statement contributed in part to big price moves and short-term trend reversals in all main markets we follow.
Let’s take a quick snapshot of today’s Money Flow grid across six (futures) markets:

Fundamental news and Central Bank policies aside, let’s focus on the knee-jerk reactions in today’s market.
First, stock prices collapsed, continuing their sell-signal down away from 2,100 (@ES top left chart).

The Dollar Index (@DX – middle right chart) collapsed today, falling from divergences against resistance.

The sudden intraday collapse in the US Dollar instantly boosted most commodities including Gold and Oil.

Chart Gold (@GC) in the upper right and Oil (@CL) in the middle left chart.

The movements here aren’t as dramatic as other markets, as these moves are currently counter-trend retracements.
Finally we see the Euro (@EC bottom right) surging at the same time the Dollar collapsed.

Perhaps the most surprising development today is the instant collapse in Treasury prices as seen via the 10-Year Treasury Note (@TY – lower left).

In sum, we have the Euro surging while commodities rally; US Stocks, the US Dollar, and the US 10-Year Treasury Note collapsed intraday.

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