Signals Popping

This past weekend’s article on SA wondered why there was so little movement in the currencies last Friday when sovereign yields spiked around the European periphery. It didn’t take long for markets to move. Here’s what we have as of this writing:

US Dollar index breaks above 76 resistance
euro breaks below $1.40 support
10 year Treasury yield firmly in 2 handle range, near YTD low
SPX went to 50 DMA to the penny Monday and today, held

This is troubling. No reason to panic yet but we must stay alert. Equity, junk bond and commodity positions are at elevated risk.

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