UUP price has cleared all the resistance on the SKI chart. Acceleration is in progress and if 10 years yields keep rising we could have a deadly mix to blow up the equity markets.
UUP
10 years yield
To give the whole perspective I am posting the weekly chart of the UUP. There is clearly a strong weekly resistance around 25.5 level. If all the obstacles for the fiscal stimulus get cleared in the next 2 weeks (debt ceiling and infrastructure bill) this level could mark the top for UUP. The SKI chart is not favouring this outcome but recently the news on stimulus have been more important than charts.
I am still long dollar and will add on weaknesses.
No comments:
Post a Comment