Most impactful commodity on the planet about to break down?

 

CLICK ON CHART TO ENLARGE

Is Crude Oil about to follow in the footsteps of the yield on the bell weather bond and break support? The left chart above highlights that the yield on the 30-year bond is breaking down, below a two-year support line. 

The right chart highlights that Crude Oil and the yield on the 30-year bond have correlated a little bit over the past couple of years, with the 30-year breaking support. 

Could crude oil follow yields and break lower? If they both break support and head lower, what would the macro message be coming from them?  If Crude would break 5-year support, traders would expressing some concern about the prospects of global growth.

At this time support is support until broken.....Stay tuned here, some important macro messages could come from crude's next big move at support. 

-

-

Are Junk Bonds suggesting the “Sky is going to fall” in stocks?

 
CLICK ON CHART TO ENLARGE
 
Is the Sky going to fall because junk bonds fall 1.4%? Junk Bond ETF (JNK) has been in the news of late, due to recent softness. Should we be concerned? Some seem to think so!

The lower inset chart does reflect that JNK has lagged SPY by almost 2.4% over the past 30 days. Is JNK breaking down? At this time JNK remains above rising support that started in October of 2011.

In my humble opinion, how JNK handles rising support in the next few weeks to come, is much more important that what JNK has done over the past 30 days.
 
-
-
 

Reversal pattern just take place in the Industrials ETF (XLI) ???

 

CLICK ON CHART TO ENLARGE

Industrial ETF XLI may have created a "Bearish Wick" on a monthly basis at its Fibonacci 161% Extension level at (1) last month. Over the past year, XLI has reflected relative strength compared to the broad market. Over the past 30 & 90 days, XLI has reflected a little bit of relative weakness.

The chart below is the Top Ten holdings of XLI that might be worth watching in the very near future!

CLICK ON CHART TO ENLARGE

Support line (2) in the top chart is drawn off "Monthly Closing" prices dating back to the 2009 low. At this time, five year support remains in place. If XLI remains weak, compared to the S&P 500, how it handles this key support line could have much to do with the direction of the broad market months from now.

Keep your eye on XLI to see how it handles support (if hit) and to see if a "Turn Around" pattern took place last month .

 

Check out our web site....Kimble Charting Solutions

-

-