Always consider hidden risks
Financial Markets: A Broader View?
July 1 2016 ( From TradingView )
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We just start to realize how deep the correction at the beginning of the year
was on the US equity market: On the low made on January 20 2016 at 181.02
on the SP500 Index (SPY ETF), even if few realize that the SPY ETF now
trade well above that level (209.48 as of June 30). (See first chart below)
Rebounding from those abyssmal technical levels was quite a statement
from Mr Market in January 2016 and February as a double bottom emerged
and since then we keep making Monthly higher highs and higher lows for
the Mighty SP500 Index. (See first chart below - Monthly Candles)
But few of us realize that we are now at the resistance of a Monthly
Downward Channel for the Mighty SP500 Index (SPY ETF) (See first chart below -
Downard Channel - Ellipse) on a weak Monthly Volume trading environment.
Some technical indicators and statistics:
1) SPY ETF is at only 2.0% from its peak reached on May 20 2015.
( See first chart below )
2) SPY ETF is in fact far of testing the Monthly Major Support Trendline that started back on March 2009.
( See first chart below - Thick Blue Trendline )
3) SPYETF closed on the Monthly Major Resistance Trendline from a Downward Channel that started back on May 2015. (See first chart below - Downward Channel - Ellipse )
Also quite interesting to have a broader view of the financial market in other asset classes. As the SPY ETF is at the Monthly Resistance Level, the TLT ETF (iShares 20+ Year Treasury Bond ETF) is quite near of a Major Monthly Resistance Trendline that started back in December 2008. (See second chart below - Blue Trendline - Ellipse)
Gold price is also at the Major Resistance Trendline that started back since August 2011 on a Monthly basis as shown by the third chart below.
But the most interesting technical factor is that at a time were we have the SPY ETF, TLT ETF and Gold prices at / near Major Resistance Monthly Trendlines, we have Dr Copper near its Major Monthly Support Trendline that started back in October 2002. (Bottom Chart - Grey Trendline - Ellipse)
Too much money from Central Banks can inflate Financial Assets like the SPY ETF but only a stronger economic activity can trigger an upwave in copper, iron ores...
"To fight and conquer in all your battles is not supreme excellence; supreme excellence consists in breaking the enemy's resistance without fighting."
-Sun Tzu, the Art of War
Financial Markets: A Broader View? $SPY #investing #bonds #SP500 #gold #copper
TLT ETF ( iShares 20+ Year Treasury Bond ETF - Monthly Candles )
SP500 Index ( SPY ETF - Monthly Candles )
Gold Futures ( Monthly Candles )
Copper Futures ( Monthly Candles )