Weekly Update – 20 September 2020 – LS Trader

Stocks

Stocks have remained week and are at interesting short-term levels. The Nasdaq 100 and S&P 500 tested support in terms of price and the 40-level on the RSI, which is bull market support. So far, both markets have held up. The long-term trend remains up for stock indices.

Commodities

Copper made a new high for the move and closed on the high of the week, which is often a sign that momentum will continue on Monday.

Gold and Silver continue to consolidate in low volatility sideways triangular patterns that have a bias to potentially breakout to the upside and resume the long-term bull trend. Breakouts from such low levels of volatility tend to be sharp. We could see some swift moves if and when the breakout is successful.

Currencies

It’s been another mixed week in the currency markets. The Australian Dollar continues its recent uptrend having held above support. The Kiwi broke out to a new high for the move but was unable to progress and closed back below prior resistance, but did still manage to make a new high close since July 2019.

USD/JPY remains in a long-term downtrend. Weakness took the market down to test support at the July low. That support has held so far.

Interest rate futures

Interest rate futures remain in a sideways quiet channel, which has been the case for several months. The sector is about as neutral as it can get as the market moves sideways with very low volatility and an RSI hovering around the midline.

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