Weekend Market Review, 8.25.19: Proceed With Caution!
The global equity markets closed the week on the edge of a very big cliff. Monday’s price action will make a big statement about the health of the overall equity markets. If it is a sharply “red” day, expect to see continued selling into the week. This negative price action would create very weak weekly and monthly charts and setup a very negative tone for the overall global economy. As the eternal optimist, I certainly hope that does not occur, but proceed with caution!
Below are several charts & shorter-term indicators that I am watching very closely, followed by a link to our Premium Weekly Review, in which we cover the markets in greater depth with a longer-term perspective.
Equities Indicator (S&P 500 Chart): NEUTRAL (MA Indicator); BEARISH (RSI Indicator)
Precious Metals Indicator (Gold Chart): BULLISH (MA Indicator); BULLISH (RSI Indicator)
Oil & Gas Indicator (Crude Oil Chart): BEARISH (MA Indicator); BEARISH (RSI Indicator)
Fixed Income Indicator (20-year Treasury vs TIPs): BULLISH (MA Indicator); BULLISH (RSI Indicator)
Recession Indicator (JNK vs IEF): Recession Risk INCREASING (MA Indicator); Recessing Risk INCREASING (RSI Indicator)
High-Yield Indicator (Junk Bonds): BULLISH (MA Indicator); BULLISH (RSI Indicator)