The Nasdaq 100 continued lower on Monday, breaking short-term support in the process. The market then reversed and moved higher to test the prior all-time high. So far, the market has been unable to break through resistance. The rally this past week has been on declining volume and volatility.
The S&P 500 and other global indexes remain weaker than the Nasdaq 100, leaving a bearish non-confirmation in place. Currently, of the global indexes, only the Nasdaq 100 is in a long-term uptrend.
The commodity markets remain quiet as many markets continue to undergo volatility compression. Multiple markets, such as Gold, continue to trade in rangebound consolidations. The pressure is building for the eventual breakouts. Breakouts from consolidations usually go in the direction of the prior trend. In the case of Gold, that suggests an upside breakout.
Currently, the LS Trader system is flat all metals and energy markets. The energy markets continue to recover from their rout earlier in the year. Crude Oil traded at a high of 72.50 on the 8th January, before declining all the way down to the mid-April low at 8.17. (prices as per the back-adjusted continuous contract). This week, Crude reached the 50% retracement level of the decline from the January high on Friday.
The long-term trend remains up for the Dollar Index. The index continues to recover from the recent sell-off, which led to a volatility extreme. We may see a test of the 200-day and 50-day moving averages this week.
Interest rate futures
Interest rate futures remain in long-term uptrends but continue to trade within the trading range that has been in place since March.