David Fuller's view The US Dollar Index (weekly & daily) has resumed its recovery following a brief consolidation and a close beneath 82 would be required to question a further rally towards the May and July highs above 84. (See also Thursday 29th August's review.)


US 10-yr Government Bond yields (weekly & daily), and their equivalents for the UK (weekly & daily), Germany (weekly & daily), Canada (weekly & daily), Switzerland (weekly & daily), Sweden (weekly & daily), and several other European countries all reached new highs for the year today, above their base formations. They are becoming temporarily overextended in a momentum move. Nevertheless, this is only the beginning of their bear market (bond prices are falling). Therefore, breaks in the unbroken progressions of higher reaction lows since May, most easily viewed on the daily charts, are required to check these advances for more than a brief period, and indicate a longer reaction and consolidation before the overall upward trends are resumed