Weekly Update – 30 June 2019 – LS Trader

Stocks

Stocks ended the week lower, but the long-term uptrend remains intact for all the stock indices we trade at LS Trader, except for the Nikkei.

The S&P 500 is leading the way to the upside but failed to clear the prior week’s high and is grappling with a clear resistance zone. A decisive breakout above this resistance would be bullish.

The Dax and Nasdaq 100 are both within range of upside breakouts to resume their respective uptrends. The Nikkei remains rangebound.

Commodities

From last week on Gold: “However, the rise has been parabolic this past week, and bullish sentiment is extremely high. It could be that we will see some weakness this week, back towards the 1360 level, before the rally continues.” Gold continued the parabolic rally early this week, before peaking at 1442.9 and reversing sharply back to 1400. Sentiment is a little lower but still elevated. The long-term trend remains up, with the market above support, but further correction could be seen before we see 1442.9 exceeded.

Currencies

From last week: “The Dollar Index broke medium-term support and a trendline that has been in place since September 2018. This may lead to further dollar weakness. “ The Dollar Index ended the week lower but has spent most of the week consolidating the prior week’s declines. We may see some strength for another test of the underside of the trend line before prices move lower. For now, the long-term uptrend remains intact, but critical support could be tested this week.

Interest rate futures

Interest rate futures are consolidating near their recent highs. However, there has been a bearish divergence between price and RSI, as mentioned last week, as well as volatility contraction, and declining volume. The trend remains up, but weakness towards a test of support looks likely.

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