![\"Spot](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-05-30-gold.png?w=525&ssl=1\")
<\/p>\nThere are currently two players destabilizing global financial markets — like elephants in a lifeboat. One is the Bank of Japan, with markets uncertain as to how massive expansion of the monetary base will play out. The second is the Fed, where hints of a taper were enough to send the market into a panic, forcing the Fed to tone down its rhetoric. Emphasis now is on marginal rather than sizable decreases in QE.<\/p>\n
Gold broke resistance at $1400, respecting primary support at $1320 and headed for another test of $1500. Uncertainty is high with the metal as likely to break resistance at $1500, signaling a primary up-trend, as to break primary support, which would offer a target of $1200*.<\/p>\n
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* Target calculation: 1350 – ( 1500 – 1350 ) = 1200<\/p>\n
Ten-year treasury yields broke resistance at 2.10%, signaling a primary up-trend. First, expect retracement to test the new support level at 2.00\/2.05 percent. Breach of that level would warn of another test of primary support at 1.60%. I do not believe that rising yields indicate a resurgence of inflation expectations, but rather anticipation of the Fed taper of quantitative easing. No one wants to be left holding bonds when yields start rising.<\/p>\n
![\"Dollar](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-05-30-tnx.png?w=525&ssl=1\")
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Brent Crude is headed for another test of resistance at $106\/barrel. Respect would indicate a down-swing to $92*, while failure would signal reversal to an up-trend. Nymex WTI respected resistance at $98 and is expected to re-test resistance at $85\/barrel. A classic pair trade, the spread between the two is likely to narrow as the European economy under-performs.<\/p>\n
![\"Brent](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-05-30-crude.png?w=525&ssl=1\")
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Commodity prices continue to fall, with the Dow Jones\/UBS Commodity Index headed for primary support at 125\/126. But signs of a base forming on the Shanghai Composite Index are likely to lift commodity prices. A Shanghai breakout above 2500 or penetration of the declining trendline would indicate a test of 150 for $DUBS.<\/p>\n
![\"Dow](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-05-30-dubs.png?w=525&ssl=1\")
<\/p>\n","protected":false},"excerpt":{"rendered":"
There are currently two players destabilizing global financial markets — like elephants in a lifeboat. One is the Bank of Japan, with markets uncertain as to how massive expansion of the monetary base will play out. The second is the Fed, where hints of a taper were enough to send the market into a panic, … <\/p>\n