The S&P 500 has closed down for four consecutive weeks. The Nasdaq 100 ended with an up week and printed a bullish engulfing pattern on the weekly chart, whilst the S&P 500 printed a hammer. Last week’s lows may be critical to the short-term direction of the market. If last week’s lows hold, we may see prices push back towards the recent highs. However, a break of the lows would likely lead to additional selling. The 40-level is holding on the RSI, which is bull market support, and the long-term trend remains up.
Metals have seen additional weakness this week, but the long-term trend remains up across the sector.
The energy markets except for Natural gas remain in long-term uptrends, but continue to trade in a range with low volatility.
The grains markets have been in strong uptrends in recent weeks but saw some corrective weakness this week. The long-term trend remains up across the sector.
The Dollar has had a good week with strength seen across the board. The Dollar Index itself has made a two month high. For now, the long-term trend remains against the Dollar.
Only the Yen remains in a current trade against the Dollar, and that trend may end this week as the Dollar corrects against the primary trend against all majors.
Interest rate futures
Interest rate futures continue to trade in a sideways quiet channel but are pressing up towards the higher end of the range, with upside breakouts very much in range.