The markets continue to consolidate overall, with the probabilities favouring breakouts to resume the prevailing long-term trends, which are currently up for stocks, commodities and interest rates, but down for the dollar.
The current quiet trading period seen in many markets will likely come to an end in the next couple of weeks, with the US election as a possible trigger for volatility.
Stocks began the week with strength but fell back through to Friday. The low of the week was printed on Thursday, where buying came in, and a hammer was printed. The long-term trend remains up and a test of last week’s high and the September high remain very possible.
The metals markets remain in long-term uptrends, but continue to consolidate. Copper is within range of a breakout this week.
The energy markets continue to coil in a narrow range and could test resistance this week. The long-term trend is up for the sector overall.
The currency markets continue to consolidate but have seen some dollar strength in places. Overall, the long-term trend remains against the dollar, and the technical picture suggests it may only be a matter of time before the weak dollar trend resumes.
Interest rate futures
Interest rate futures continue to consolidate, as they have now for months. The long-term trend remains up, and the odds favour an upside resolution to this trading range.