The 20DMF issued a short signal, but we can see that the NQ8 and the S&P500 are also in a short mode.
The only sectors that display a positive Money Flow are related to health/biotech.
The 10Y rates are clearly heading higher, which is the reason for the drop in equities since equities are still overvalued here.
At today's rates, $3600 is the max valuation for equities. This means that equities should drop below that level in order to be attractive to yield seeking investors.
I believe that the NHNL indicator is not low enough for the markets to offer a possible reversal.
Conclusions:
Markets will probably move lower in the coming days, until we reach more attractive prices.
Below are the trade ideas for the coming days.
