Is the “Mother of all support tests in play currently?” It humbly looks like it to me friends!
This 2-pack looks at the Banking Index and the Thomson Reuters Equal Weight Commodity Index on a quarterly basis over the past few decades.
Line (1) has been support and resistance for each over the past twenty to forty years. The sharp declines this past quarter have each testing support at (2).
The idea of support is support until broken becomes very important currently!!!
If both of these would break support at each (2), they would be sending a signal that some tough times are ahead.
Keep a close eye on what Banks and Commodities do here, as odds are high they are going to send us a very important long-term macro message at each (2)!
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