Weekly Update – 14 June 2020 – LS Trader

Stocks

The Nasdaq 100 continued to make new highs through to Wednesday. Thursday saw a sharp one-day reversal, which took the market back below the change of polarity from the February all-time high. Friday printed a long-legged doji, which is an indecision pattern. Bulls have so far defended the index at fair value. The trend remains up.

Divergence continues between the Nasdaq 100 and S&P 500, which remains well short of its all-time highs printed in February. The S&P 500 also saw weakness this week but remains in a long-term downtrend. For now, the only stock index of the four we trade at LS Trader in a long-term uptrend is the Nasdaq 100.

Commodities

Gold ended the week higher, regaining the 50-day moving average and moving back into the prior range. The long-term trend remains up.

One of the big movers recently has been Rough Rice. Rice had been in a massive bull market, reaching a high of 23.565 before trading limit down for four days, which took the market back below support, bringing the uptrend to an end.

Currencies

Selling in the Dollar Index reached a volatility extreme and buyers returned during the second half of the week, keeping the long-term trend up. The long-term trend continues to favour the dollar against most of the majors.

Interest rate futures

From last week: “The market finally broke out of the range but did so to the downside. However, for now, at least, the long-term trend is up.” Interest rate futures had a good week, retracing almost all of the prior week’s decline. This has taken the sector back above the 50-day MA and into the previous range. The trend remains up.

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