Excellent Intermarket work by Jordan Kotick via CNBC:
Jordan Kotick is Managing Director and Head of Technical Strategy at Barclays Capital. He is the past President of the Market Technicians Association (MTA) and was the first person to have ever been President of both the MTA and the Canadian Society of Technical Analysts (CSTA).
Jordan points to the basing out in heating oil leading the energy complex. He sees this is as a sign of stability because it shows evidence of this being just a seasonal correction and not a major bear market at this point.
Breadth is not deteriorating in any significant way. Advancers/Decliners in NYSE are going sideways so the internals are showing that the market is stable.
In currencies, the Risk off trade you buy dollars, risk on trade you sell dollars. When the Dollar is sold more aggressively in Asia this is a good sign for risk.
The Brazilian Real traditionally is the king of the carry trade, a harbinger of risk. Dollar buying and real weakness seems to be coming to an end and this is also a sign of the market being stable.
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