Market Sense and Sentiment

[bbgold]

Diverging Interests in Holdings
You can see in the TNX spike yesterday when the Markets had their big jump up the outflow of cash from Bonds to the Markets. In most any other chart analysis this would be seen as an exhaustion spike high. Today's complete reversal showing money out of the Markets and into Bonds is not reflected in the Markets action today as the Markets are still trying to hold positive. This Divergence of Interest in where the Money is flowing has, in the past, shown the TNX to be the leading indicator of where Cash is moving to. I believe this is again a sign that the Markets are weaker here than they appear to be. Whether yesterday's spikes in the TNX and Markets will indeed be the Exhaustion move to the upside here we will have to see. In my humble opinion I believe that any Topside is done here and a selloff into the end of May is possible.
Use some Caution on Longs, set stops and lock in profits where appropriate.
Have a Wonderful Week!