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Risk Off Takes Hold as Long Bonds, Gold, Silver Ready to Outperform S&P 500

Published 08/24/2023, 03:00 AM
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The US dollar is below the July 6-month calendar range high now, while gold returned over the July 6-month CR low. Silver improved its phase.

Yields rallied through the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) and are threatening to outperform the SPY: a risk-off scenario.

What’s next?

Silver Daily Chart

iShares Silver Trust (NYSE:SLV) is above the 50-DMA for an improved phase change to bullish.

The Real Motion indicator shows improved momentum.

Plus, Silver is now outperforming the SPY, which is inflationary and perhaps the first sign of risk-off.

Gold Daily Chart

GLD (NYSE:GLD) also improved its phase to Accumulation. More noteworthy than silver, it is outperforming the SPY, which is a sign of risk off even with the indexes rallying today.

On Real Motion, GLD had a mean reversion.

Metals look strong.

Furthermore, the Dollar looks vulnerable, failing the July calendar range high.

TLT looks like a huge potential double bottom in the making going back to October 2022.

And even if China got a bid, it will have to hold above 26.50 or its July 6-month calendar range low.

ETF Summary

  • S&P 500 (SPY) 440 now back to pivotal
  • Russell 2000 (IWM) Popped off the key support. 185 pivotal
  • Dow (DIA) Will watch to see if it can back over 347
  • Nasdaq (QQQ) 363 back to key support
  • Regional banks (KRE) Still needs to get back over 44 to be convincing
  • Semiconductors (SMH) 150 back to pivotal
  • Transportation (IYT) 239 still support to hold with 252 biggest overhead resistance
  • Biotechnology (IBB) Compression between 124-130
  • Retail (XRT) 62.80 the July 6-mo. calendar range low that failed yesterday, saw a return above today.

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