Weekly Update – 10 May 2020 – LS Trader

Stocks

The S&P ended the week higher but remains below the recent high, which is a clear resistance level. In addition, volatility continues to contract, as does volume. The RSI, despite the massive rally, has been unable to clear the 60 level and remains in the bear range. The long-term trend remains down.

The Nasdaq 100 has been stronger and did exceed its prior high. However, the same technical weakness is also evident here, except for the RSI, which has moved above 60. New all-time highs are a possibility.

Commodities

Gold has held above support and continues to trade sideways in a triangle. The triangle has a slight upward bias in terms of the expected breakout being in the direction of the primary trend, which is up.

The energy markets continue their recovery but remain in a long-term downtrend.

Currencies

The Japanese Yen was the first to break out, but as yet without follow-through. The Dollar remains within range of breakouts against multiple majors.

Interest rate futures

From last week: “Interest rate futures have failed to move higher and break the neckline, as volatility continues to contract. This is a choppy consolidation that could still resolve either way, with a slight upward bias in the direction of the primary trend.” Interest rate futures have continued to trade mostly sideways, with a slight upward bias, especially in the shorter-term markets. The 3-Month Eurodollar broke out to a new high but was unable to hold that high into the close.

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