Weekly Update – 15 August 2020 – LS Trader

Stocks

The Nasdaq 100 began the week with weakness but bounced off support at fair value and came back to test the all-time high printed the prior week. The trend remains up.

The S&P 500 completed its recovery from the February/March crash and recorded a new all-time high this week. The trend remains up for the US stock indices but is still down for the Dax and the Nikkei 225.

Commodities

Gold and Silver both corrected sharply this week. Gold’s reversal was sufficient to break fair value and support and bring the current trend to an end, for now. Silver held up better and remains above support.

Currencies

The Dollar has had a mixed week again, gaining against some of the majors and falling against others. The Dollar Index itself ended the week lower and may test the recent lows again this week.

The British Pound is within range of a breakout and change of long-term trend to up against the Dollar.

The Euro found support this week against the Dollar and has pushed back up towards the local top, which may be tested this week. The correction has burned off some of the volatility excess, but momentum remains strong. The RSI fell to and then bounced from the 60 level, which is normally the sign of a strong trend.

Interest rate futures

Interest rate futures moved lower this week, and the uptrend is likely over for now. Volatility has expanded as the markets moved to the downside. The long-term trend remains up, and these markets remain within the sideways range that has contained the majority of trade since March.

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