Market participants are witnessing extreme dollar strength and exceedingly high yields in short-term Treasury Bills as continued uncertainty and angst surrounding negotiations to raise or suspend the debt ceiling are still at a stalemate. The US dollar has climbed higher for the last three consecutive weeks after trading to a low at the beginning of May at 101.

Short-term T-bills maturing between June 6th through 15th are currently yielding 5.997%, an indication of the angst regarding whether a debt ceiling resolution can be reached on time before threatening a government default of its financial obligations.

The latest round of debt-ceiling talks between the President and House Speaker began tonight at 5:30 PM EDT. While both sides have presented optimism on passing legislation that would temporarily suspend, or raise the debt limit ceiling, the Democrats and Republicans are still far apart.

In the mid-1990s as a young technical market analyst I was invited to speak at the Dow Jones Financial Symposium, a three-month lecture tour of which I attended one full month speaking at eight cities. Many of the top technical analysts were also speakers with long histories as technical analysts.

Over the last few weeks, there has been a pivot in market sentiment for gold moving it from bullish to bearish. On Tuesday, May 16 gold futures basis the most active June contract opened at approximately $2020 per ounce. Today gold futures traded to a low of $1954.40.