Exhaustion Summation Index is special kind of MOMO Exhaustion Indicator which wllows us to bring a medium term perspective to the degree of EXUBERANCE or PANIC we have in a Market at a certain point in time.
We ususally look at the Weekly and the Daily index to determine where we deal with medium term or shorter term Exhaustion situations. A good Cyclical Pivot shows up in both Indicators simultaniously either by Divergence or by sporting an Extreme
(Values >>1 : Exuberance, Values <<0 : PANIC).
DOLLAR:
The key timesseries to look at this juncture is the USD (index: DXY). The Euro is flying, Silver ,Gold, Oil and commodities are 'our last hope' and all is 100% negatively correlated to the USD.
The Exh Summ. Index is painting another picture, namely one of a downside exhausting DXY that could be in for some serious (10+ big figures) rally. The positive Div. on the weekly is one of the most pronounced in 30yrs (!!). If the weekly does NOT break the divergence (see green DIV line in the top chart) then buckle up, because we will experience a completely unexpected short covering rally of biblical proportions.
SPYDER:
SILVER:Silver seems flaming out. 40-45 is the target zone and it can turn here any second....
COMMODITIES:
COMMODITIES:Commodities in general show a more ambivalent picture where differnt cases seem possible
BOTTOM LINE:
BOTTOM LINE: WATCH the DOLLAR
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