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Today’s “Macro Monday” post takes a look at the message billions of free thinking people (BFTP) are sharing in regards to a basket of important assets, that impacts our lives on a daily basis. I am not sharing today what this asset is, because I want 100% of the focus to be on the price message free thinking people are sending at this critical juncture.
As you can see above, BFTP have driven down this index hard over the past few years, especially this past year. The decline has this macro index testing support channel (1), that has been in place for over a decade and support channel (2), that has been in place the past 4-years at one price point at (3).
A break of dual support at (3) would suggest we have a circumstance on our hands that we haven’t seen since 2009. As you can see, even during the financial crisis, this support line held!
Will it hold at (3)? I will throw this out from a macro point of view. Should free thinking people break support at (3), odds are pretty decent that King Dollar continues to gain strength!!!
I will update this chart in the near future. Humbly, it seems that what people do at price point (3), would impact portfolio construction for months to come!