Charts of interest for the next while are the Australian Composite Index (
$AORD),
AUD/USD Forex pair, Commodities Index (
$CRX), and the Commodities ETF ((
DBC). They are each at levels of resistance, have trended similarly, and the Australian currency is leading this latest rally...
whether it will continue to lead the Commodities and Equities markets upwards to possibly new highs for this year remains to be seen...a reversal of the current
Death Cross of the 50sma and the 200 sma to form a
Golden Cross, with price holding above the 50 sma on all of them could also see this latest downtrend reverse with higher highs and lows continuing into next year.
Otherwise, if price fails at the current levels, we could see a return to weakness in these markets with price falling back into their large trading range with volatile moves in both directions until a new trend is established.
If the
VIX returns upwards to
25.00 and holds above that level, there is a good chance for volatility to return once more (see my post of September 12, 2011):
http://strawberryblondesmarketsummary.blogspot.com/2011/09/money-is-always-interesting-subject.html
The
Daily charts below speak for themselves in this regard.
