XLP retains it’s status as a leading bear sector in the US market. At the moment, moving averages, price action and chart pattern paint a bearish reversal setup. 1) Moving average dead cross. 2) Bearish expansion in January terminates last 4 quarters of higher lows. 3) Fallen out of equidistant channel.
4 moving average overlay on weekly chart shows DXY on downtrend over 3-6 months. Going long is a contrarian move that has to fight many resistance levels.
Stock indices continue to be bullish. DAX 30 is correcting, Nikkei 225 could be correcting soon. Until 13-week ema is broken, no reason for alarm.
XAUUSD is setting up a potential breakout if this triangle formation is valid. Gold bulls’ wait could be over soon in this sequence 1. break trend line 2. break strong resistance 3. new high.
These could be leading elements of weakness among stock indices. Likely softening due to profit taking since they are not anywhere near to sweet spot that would entice sellers to come in.