It was a horrid day for the market, but a very good day for chartists.
We got a taste yesterday of the power of our yield curve model, with SPX dropping by the largest percentage since October 2022 to nail our next downside target.
continued for members…
The 2s10s has since “recovered” to -16 bps and VIX has backed off its pop. So, ES is hovering around flat as we approach the open.
Note that ES has bounced off its white channel bottom…
…while SPX closed at its SMA50.
Note that USDJPY has backtested its SMA200, potentially throwing the weight of the yen carry trade behind the bulls.
