The 30-year yield is back above trend and traders need to be alert here. This had been a level of resistance for price and we'd expect some solid support for bond prices if a yield of 5.775% were reached on the 30-year. Traders have some good groups to be keeping an eye on now. We'd be setting some alerts on the retails (RLX.X), Gold/Silver (XAU.X) and the 30-year (TYX.X) to get a good grip on how the market is viewing the economy. Don't forget the autos which we talked about in-depth early this morning.
Bull still stirring in oil
A couple of weeks ago, we mentioned that there might still be a bull in the oils and traders may have forgotten about these stocks. With some of the activity we're seeing in bonds and gold today, we thought we'd better revisit this index and see what is taking place.
Oil Index Chart - last five months.
A trade at 314 could trigger a short-term pop in the OIX.X and MACD looks favorable for a move higher here. We've had a level of horizontal resistance in place at the 317 level for some time and that would be our alert that the bull may be gaining strength. This chart is starting to show some strength above the 50-day MA (thin blue) so traders should be alert here.
Pharmaceutical Index Alert!
The DRG.X just triggered our upside alert at 440 and this index looks to be on the move.