Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
-“Don’t forget about the line that extends off of the 1996 and 2007 highs. That line crosses through the 2008, 2011, and highs as well. The rate has traded off of that level. In 2011 (record free float high), the rate surged through the line in late July before topping on August 1st.”
-“The momentum profile (divergence at the last 2 highs with the most recent top accompanied by RSI < 70) warns of an important top.” Weakness below .8513 would open up a measured level at .8452 (a former high comes in at .8432). Only above .8592 would negate the immediate bearish outlook.
LEVELS: .8391 .8431 .8513 | .8546 .8576 .8592
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