At first let me share this Inflation/Deflation Chart with you that displays the view de jour by the Mr. Market and how this has led or better translated into the Dollar.
As you can see Mr. Market was concerned about Inflation over the last 2 month after a period of deflationary concerns...
It looks like he wants to turn his eye back on deflation. Let him show his hand and we will have to respect his decision....
The 2nd Chart shows why the Dollar is such an important market to watch for the time being. It also shows why a steepening Yieldcurve is actually a bad signal rather than a ray of hope. The notion of a Balance Sheet recession changes the perspective which is why we are at great risk.
As an aside did you notice the the sym. Triangle in the EURUSD has its tip pointing at May 22/26 and therefore alluding at potential turn.
This set up offers Mr. Market a crossroad and the question is whether he will take it.
Technical Analysis just provides a context not the catalyst.
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