Tracking Movement Of The MMRI.

From Greg M

Lions and friends…

If you track the MMRI to help you gauge market risk, this may be interesting to you.

This work was sent to me by FHIX28 and is definitely worth looking at.

Thank you FHIX28! He gives a full explanation on what he is looking at below the chart.

The Orange line is the 50 SMA, the Green line is the 200 SMA. The trend shows much more upside for the MMRI, but it may be signaling a bounce at the 50 SMA very soon. This shows us that even though there is a small pullback in risk, when the MMRI hits the 50 SMA, the MMRI has room to move much higher afterwards. The MMRI has room to dip below 300, but bounce back over quickly, and move higher. This could be the result of the FED keeping rates higher-for-longer at the moment, as a FED pause doesn't completely eliminate risk.

The crossover exists when the 200 SMA moves above the 50 SMA and then crosses back in a short period of time, while already in an uptrend. There are multiple times the MMRI dips below the 50 SMA before the MMRI reverts into a downtrend. There has not been a dip below the 50 SMA since the crossover in July. From a technical standpoint, it appears that the market is over reacting to a sudden shift. IMO the MMRI will keep rising until something breaks that forces the FED cut rates.