Global Macro Update - Asset classes consolidate after the recent moves

10-Year USTs need to fill the Gap and break out of the current ranges to initiate a decisive trend. Until ranges hold I remain cautiously monitoring the price action ahead of the end oof QE2.

Copper is consolidating inside a tight range and looks like a Descending Triangle is in the making.

It is a bit early to call a breakdown, however if we see a close below 407, Copper should slide to the next support at ~360.

On the upside the Major trendline (RED) is the important Resistance guide to price action.

Gold seems weary of the slow grinding higher and at a trendline Resistance with technicals screaming for a pullback if not Reversal.

Silver produced a large DOJI. Could be a blow-off top of just a temporary indecision.

Next Support comes around 42 and then will see which one is the case.

S&P 500 coils higher on low volume.

USD is trending inside the down channel.

Compalcency rules the market.

Inflation talk > Major Assets Performance since Jan 2008

EUR/USD Trend Channel suggests a move above 1.45

A simple 4H chart suggest we see some more filling the 1.44-45 range before a continuation along the trend above 1.45. My guess is the large intra-day swings we saw in the recent days were meant to shake off the weak longs and get more small fish that shorted on the move below 1.4450 on the boat before the true move above 1.45 starts.

Bollinger Bands & Slow Stochastics Trading System

Here are just exemplary Entries and Exits for a Trading System based on Bollinger Bands and Slow Stochastics.

US Dollar Index (DX) - A possible Falling Wedge Bullish signal in the making

USDX bounced off the important Support around 75.50 and is trading currently inside a possible Falling Wedge that could produce a Bullish signal if broken on the upside. An important level to watch for this breakout is 76.50.

30-Year UST Bond targets 117.50

Everybody awaits hints of rising rates and a bond market selloff ahead of the end of QE2.

Technicall the 30-Year UST Bond is below the pivotal 120 mark and indicators point to a further decline which is in line with the fundamental expectations of rising yields.

Stochastics entered into Oversold territory, however BBands and charts points to immediate targets around 117.50-118 before a bounce could be expected.

Small Caps continue to Outperform the S&P 500

The Russell 2000 index continues to outperform the S&P as the ratio chart shows. It usually means that large caps are fairly valued and money flows into Small Caps in search of additional alpha.