Two weeks ago, we warned that this trend would be strong for our “Chart of the Day” on March 15, and now that is breaking the multi-year trendline, it is time to revisit where we can go next. The overbought RSI didn’t matter too much, and probably doesn’t now either. It could pause the trend but, ultimately, while we are above the 109.30 level, the risk is for a test of the channel at 112.00, which is also a 127% extension of the June 2020 highs to January 2021 lows.
Also, the market is closely watching the for clues, which we feel this correlation should stay strong near term as well.
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