The markets continue to trade mostly sideways in the run-up to the US election. However, multiple markets are within range of breakouts, and this rangebound trading is likely to resolve soon, with the odds favouring a breakout in the direction of the prevailing long-term trends.
Stocks have consolidated for a second week, closing slightly lower. Candle bodies ae shrinking on the daily and weekly charts, which show indecision as we move into the final week ahead of the US election.
The Nasdaq 100 closed lower for the first week in five and has printed several clustered closes. As with the S&P 500, candle bodies are contracting. The long-term trend remains up.
Volatility continues to contract in the metals markets. The long-term trend remains up. Copper broke out again to reach its highest level since July 2020. Following the strong breakout on Tuesday, with follow-through on Wednesday, the market has moved lower to restest the breakout level. Support should be seen at or near current levels if the uptrend is good.
The past week has seen Dollar weakness across the board. Several major currencies are within range of breakouts against the Dollar.
Interest rate futures
Interest rate futures have moved lower break out of the short-term rectangle. The markets remain in the longer-term rectangle and are still in long-term uptrends, but short-term weakness may continue to push the markets lower in the near-term. This week has seen the 40-level break on the RSI, so the RSI is in the bear range.