Good morning and welcome to this week’s Flight Path. Equities couldn’t maintain onto “Go” colours any longer and we noticed a robust purple “NoGo” bar because the pattern modified on the final bar of the week. GoNoGo Pattern painted sturdy blue “Go” bars for treasury bond costs whereas the pattern remained a “NoGo” for U.S. commodities and the greenback, each portray sturdy purple bars because the week got here to a detailed.

$SPY Falls into Robust “NoGo” Pattern

Worth gapped decrease on Friday, and GoNoGo Pattern painted a primary sturdy “NoGo” bar. This got here after per week the place GoNoGo Oscillator had been under zero on heavy quantity. Later within the week we noticed the oscillator get rejected at that degree as extra sellers entered the market. We had additionally seen uncertainty within the pattern with a number of amber “Go Fish” bars sprinkled in with the weaker aqua pattern colour. We’ll watch to see if the oscillator falls additional into destructive territory this week which might add downward strain on worth.

An inflection level has arrived on the weekly chart. A second weaker aqua bar tells us that the long run pattern continues to be weak after the final Go Countertrend Correction Icon (pink arrow) informed us worth might wrestle to go greater within the brief time period. GoNoGo Oscillator has fallen to check the zero line from above and we are going to watch to see if it finds assist right here at this degree. A break into destructive territory would probably sign a deeper correction.

Treasury Charges Crash to New Lows in “NoGo” Pattern

This week we noticed one other uninterrupted string of purple “NoGo” bars as worth fell each single day of the week. Because the week progressed worth accelerated its transfer to the draw back. We now see that GoNoGo Oscillator is in oversold territory at an excessive worth of -6.

The weekly chart under exhibits that worth has fallen to check prior lows. A second weaker pink “NoGo” bar has pushed worth all the way down to horizontal ranges that would present assist. We additionally see that GoNoGo Oscillator has fallen into oversold territory on the weekly chart as effectively at a price of -5.

The Greenback Reverts Again to “NoGo” Pattern

After a whole lot of uncertainty final week, the greenback fell again right into a “NoGo” pattern this week with pink and purple bars. On the final day of the week, worth gapped decrease and is now testing assist from earlier lows that we see within the chart. GoNoGo Oscillator broke out of a Max GoNoGo Squeeze on heavy quantity as effectively which tells us that momentum is resurgent within the path of the “NoGo” pattern. We’ll watch to see if worth can fall to new lows this week.