The bearish divergence on the hourly chart amid suggests potential for a corrective move to 18,723 levels.
The Trump rally appears to be overdone, while the markets have jacked-off treasury yields significantly higher in a very short period of time.
Moreover, Trump is yet to announce fiscal stimulus and there is every possibility that he may fall short of the market expectation. Furthermore, Dec Fed rate hike bets are above 80%. Forex markets appear to have priced-in the heightened rate hike probability… equities are yet to do so.
Hence, a retreat to 5-DMA level of 18,684 today cannot be ruled out.
The Trump rally appears to be overdone, while the markets have jacked-off treasury yields significantly higher in a very short period of time.
Moreover, Trump is yet to announce fiscal stimulus and there is every possibility that he may fall short of the market expectation. Furthermore, Dec Fed rate hike bets are above 80%. Forex markets appear to have priced-in the heightened rate hike probability… equities are yet to do so.
Hence, a retreat to 5-DMA level of 18,684 today cannot be ruled out.
