Gold, Treasuries, And U.S. Dollar All Point To More Downside For Stocks

From Corey Rosenbloom: This morning we just updated the “Stock market crashing through key target levels,” but what’s happening beyond the stock market?

What’s happening to Gold, US Treasuries, and the US Dollar? Are they surging or crashing too?

Let’s find out as volatility has clearly returned to our markets:

Using the stock market as our baseline, we see a swing down to begin March and a short-lived positive reversal on the Federal Reserve raising interest rates last Wednesday.

While price stalled then began trading lower, this morning gives us a literal collapse of the market.

At the same time, Gold was trading lower into the Fed announcement then reversed positively and continued its bullish surge (as we forecast in this week’s Member Strategy report).

Similarly, U.S. Treasuries (positively correlated to Gold recently) traded down into the announcement and then surged/reversed higher after it.

While safety markets Gold and Treasuries surged, unfortunately the US Dollar Index collapsed right with the stock market, plunging to a new swing low beneath the key 100 index level.

It helps to take a quick look at the broader picture of money flow, even if you don’t trade these markets.

The SPDR S&P 500 ETF Trust (NYSE:SPY) rose $0.07 (+0.03%) in premarket trading Wednesday. Year-to-date, the largest ETF tied to the S&P 500 has gained 4.56%.

SPY currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 107 ETFs in the Large Cap Blend ETFs category.


This article is brought to you courtesy of AfraidToTrade.com.

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