Weekly Update – 15 September 2019 – LS Trader

Stocks

Stocks rolled to the December contract during another bullish week. New all-time highs could be seen this week. The S&P 500 came close to an all-time high on Friday but printed a bearish shooting star pattern as resistance held firm. This has the market at a critical resistance level. The RSI has also closed right on the 60 level, so price action next week could be decisive. Price action in the Nasdaq 100 was very similar. The long-term trend remains up for US stocks.

The Dax and Nikkei are both within range of upside breakouts and changes of long-term trend to up.

Commodities

The metals markets saw mixed trading. Silver got crushed, and Gold also declined, with both markets breaking support and bringing an end to the uptrend for now. Palladium rallied to print new all-time highs. Copper continued its recovery rally, making its highest print since July.

Currencies

We’ve written in recent weeks about the bullish commercial position in the British Pound and the importance of the $1.20 level. The $1.20 level did provide support, and a strong rally has followed. The Pound is now at its highest level since July, and commercials remain near a record net long position.

Interest rate futures

Interest rate futures saw a second week of heavy selling with support being broken. The uptrend is over, at least for now. Weakness has been so extreme in the past two weeks that the RSI has broken the 40 level and is now in the bear range. Considerable further weakness will be required for a long-term trend change to down, and the trend remains up.

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