Wall Street rallied overnight but “they” are going to have to do...

Wall Street rallied overnight but “they” are going to have to do a lot better than that if they want to take the market to new highs.  The two most aggressive looking charts of the nine sectors that make up the market are XLP (Consumer Staples) and XLU (Utilities).  These are the two least aggressive sectors of the whole market. So at this stage, I must say that it is not a very impressive effort.  Need to do a lot better if we are going to see another leg higher. I’ll give them another day or two.

US interest rates were marginally higher but nothing very convincing there either. Crude finished at its best level since November last year.

Precious metals all eased back with very little change in the US dollar.  Gold itself is stuck in a little uptrend at the moment that isn’t giving much in the way of signals to build on.  But when looking at the gold sector, it is our XGD index chart that bothers me.  It has the potential to be forming an ominous looking head and shoulders top pattern.  Until I can see that the market has negated this potentially bearish pattern, I am treading a little carefully in this sector.

The rest of our market hardly impressed again yesterday.  It had the opportunity to have a worthwhile bounce over the past couple of days but has been slow to gravitate north.  Just stuck in this same range now for over a month.  Don’t like it when markets can’t move when the background noise is encouraging.

Our interest rates rallied marginally yesterday after falling so sharply over recent weeks.  It was getting to the point that even Ten Year Treasury Bonds were almost yielding the same as the bank bill rate.  This whole picture is far from “nice” at the moment.