Morning Corner 8.16.11

3 Mth vs Overnight Libor (daily info)
-no change
trend=no
direction=up (1 bar)
high= 0.147
rev= 0.124; mid= 0.136

The spread between 3 month and Overnight is increasing again. That spike in the overnight might have been the warning shot across the bow.



IBEX (weekly info)
WEEKLY CONFIRMATION new low 8647.30
trend=no
direction=down (2 bars)
low= 8647.30
rev= 11068.10; mid= 9857.70

Last week could have ended up a lot worse than it did. It tested lows not seen since 2009. It's below all SMA's. It failed the 61.8% retrace for the second time (weekly chart).



DXY/Gold (weekly info)
new low 0.0428
trend=down
low= 0.0428
rev= 0.0463; mid= 0.0446


The DXY/Gold ratio has been in a down move since June 2002. After a small rally in 2008 the move down accelerated. It's below all SMA's. I'd add a fibonacci retrace but it doesn't appear to be bottoming.