This was due to a continuation selling of US Treasuries combined to a continuation of index investors buying activity.
It was interesting to note that yesterday, the NQ8 Money Flow was weaker than the NQ100 Money Flow. You will note that the QQQ price followed the NQ8 MF trend and not the NQ100 MF trend. This tells us that there could be some issue with the NQ8 stocks, but since index investors continued piling into the QQQ ETF, the Money Flow on the NQ100 stocks showed accumulation.
Let's keep a close eye on the NQ8 Money Flow pattern.
Note that the small caps Money flow is still relatively weak, although not in negative territory for now.
The energy sector looks weaker than the rest of the market, probably due to weakening oil prices.
Utilities and REITs are also weak due to the market expectations of higher rates.
On the currencies front, higher rates should attract US$ buyers and PM sellers, but this is not the case.
The strange thing here is that the Euro looks also bearish.
Conclusions:
For now, I do not understand why big players seem to be buying gold/silver futures: higher rates should attract sellers. There might be something going on there.
The general market is overbought, which does not prevent it from getting more overbought.
The best for now is to continue to closely follow the NQ8, the Small Caps and the money flow out of the US Treasuries.
