Temporary Volatility or Start of a Trend Shift?

AE Global Liquidity Oscillator manifesting its first negative sign this week.

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In the last 4 weeks, this was the first-ever instance of a negative value that we observed. The recent movements in the MOVE index, which tracks bond market volatility, played a role in this shift.

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Also, Bitcoin has been the one to track this negative signal. In spite of this, the 3M RoC of GL has managed to keep a positive score, indicating that one part of the liquidity process is still displaying strength.

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While the recent dip signals caution in the short term, the sustained positive RoC indicates that underlying liquidity strength could support a rebound. We see this is just short-term volatility, and the broader outlook remains bullish. Keeping a very close eye on this regardless.