From last week: “There is a massive inverted head and shoulders continuation pattern forming on the S&P 500, which if completed, has extremely bullish implications, with price projections over 3600. It’s possible that we could see new all-time highs in both US indexes this week.” Both markets rallied to new all-time highs this week with potential to move considerably higher still.
The Dax and the Nikkei also both rallied to new highs for the current move again this week.
Palladium printed new all-time highs once again, remaining by far the strongest metal and commodity. Gold and Silver ended the week higher but continue to consolidate.
The energy markets remain rangebound despite a bullish day on Friday. The long-term trend remains down for the sector, except for Natural Gas.
The dollar has seen some weakness this week against the majors. The Dollar Index declined and will likely test short-term support this week. The New Zealand dollar may complete a head and shoulders bottom this week.
The British Pound moved higher throughout the week and may test the 1.3037 high printed on the 21st October this week. The Pound has the potential to move much higher over the coming months if Brexit gets resolved. Commercials remain net long.
The dollar did breakout against the Yen this week, completing a change of long-term trend, but reversed sharply, narrowly holding support.
Interest rate futures
Interest rate futures held support and ended the week higher. The long-term trend remains up for interest rate futures.