Weekly Technicals Essentials

Equity pessimism stretched in absolute and relative terms.

A number of equity indices have hit stretched pessimism levels, with equity volatility hitting overbought levels on Nasdaq. While risk aversion is not yet stretched, pessimism on global equities last week hit stretched levels vs. bonds. 

Dollar still stretched on a number of fronts.

US dollar index optimism remains stretched as DXY has moved above March 2020 highs. Stretched optimism is a risk for USD/KRW as it pushes past an important resistance area (notable given that dollar-won is a cross-check on EM equities). 

Copper and Silver sentiment badly tarnished.

In metals, Copper has reached stretched pessimism territory as futures near a potential support area around August 2011 lows. Silver pessimism is also stretched. 

Weekly Technicals Essentials