Global stocks have continued to recover since the late December lows. A change of long-term trend to up is moving within range, but there is clear resistance at current levels. It is also notable that volatility and volume have contracted and that there is bearish momentum divergence. This shows that the current rallies are tired.
Gold and Silver have both seen considerable weakness this week, and we exited our long Gold trade on a break of resistance. In spite of this weakness, Palladium made new all-time highs and Copper also made new highs for the current move.
The long-term trend remains up for the dollar against most of the majors, and there are possible long dollar breakout within range this week. These include resumptions of the long-term trend for the Dollar Index (up) and the EUR/USD (down). USD/JPY is within range of a change of long-term trend breakout to up.
The British Pound is the exception, which tested long-term trend resistance this week and is in range of completing a change of long-term trend to up.
Interest rate futures
Interest rate futures remain in long-term uptrends, but all have seen weakness this week. Bull market RSI support is being tested with the markets closing just above the 40 level on Friday. Next week could be a pivotal week for the sector because if support is broken there is plenty of room for additional weakness before the next level of support is reached.