The Nasdaq 100 broke out to new all-time highs on Tuesday but has been unable to hold on to those gains and has pulled back towards the prior February highs. The February highs, which previously acted as resistance, may now provide support. Weakness below that support level will indicate probable further declines.
The S&P 500 and other global stock indices continue to lag the Nasdaq 100, and they remain in long-term downtrends. Downside breakouts to resume the long-term downtrend are within range.
Gold exceeded resistance at 1789 but so far without follow through. The long-term uptrend remains intact, and we may see further rally if the market can clear 1800.
Crude Oil tested the 50% retracement level of the decline from January to the April low and has been unable to make progress. The area above current prices includes the large gap down on the 9th March, which remains unfilled and is likely to provide further resistance if we get an additional rally. Despite the rally in the energy markets, the long-term trend remains down across the board.
The currency markets remain mixed, with the long-term trend still up for the Dollar index, but down for the dollar against the Australian dollar, Japanese Yen, and Swiss Franc. There are some currency breakouts in range this week.
Interest rate futures
Interest rate futures have rallied up to the top of their ranges and look set to test resistance at the upper boundary of the rectangles that have been in place since March. With the current low levels of volatility and the length of the consolidation, any breakouts have potential to yield decent-sized moves.