From last week: “However, the S&P 500 and Nasdaq 100 have yet to breakout and remain below resistance. Breakouts are within range for both.” The S&P 500 remains just a fraction below key resistance in price and RSI. The RSI is at the 60 level on the daily and weekly charts.
There is a massive inverted head and shoulders continuation pattern forming on the S&P 500, which if completed, has extremely bullish implications, with price projections over 3600. It’s possible that we could see new all-time highs in both US indexes this week.
The Dax and the Nikkei have both rallied to new highs for the current move.
The metals had a decent week overall. Palladium printed new all-time highs once again. Both Gold and Silver have shown renewed signs of strength this week, but both had ugly one-day candles on Friday.
The dollar declined to new lows for the current move on Monday but then reversed and advanced for the rest of the week. The long-term trend continues to favour the Dollar Index. The dollar is also in an uptrend against all of the majors except the British Pound, Japanese Yen and the Canadian dollar. We may see the dollar breakout against the Yen this week, completing a change of long-term trend.
Interest rate futures
Interest rate futures continue to decline. For now, the long-term trend remains up, but prices are not back to the lower end of the trading range with a change of trend to down potentially coming into range in the coming weeks if weakness persists.