Interesting charts September 21st 2023
S&P500 is approaching the region of the 200-day MA. That level will need to hold if the nine-month recovery is to remain credible.
10-year – 3-month yield curve spread is now trending higher and closed above the 200-day MA. For now the spread is rising because the 10-year yield is rising faster than the 3-month. When the first interest rate cuts arrive, the spread is likely to accelerate higher. That generally coincides with a deep pullback in stock prices.
Copper broke lower in early trading but pared the decline before the close. Downside follow through tomorrow would confirm the break below the 1000-day MA and further emphasise the completing type-2 top with righthand extension formation.
