Monday is a Bank Holiday in the UK, but US markets will be open as usual.
The S&P 500 printed a new all-time high this week but reversed sharply on the same day, before recovering most of those declines on Friday. The trend remains up, and new highs look likely. Similar price action was seen in the Nasdaq 100. The RSI remains in the bull range. However, the continued collapse in volatility does put a question mark against much further rally.
From last week: “The Nikkei tested resistance this past week but stands a good chance of a breakout this week ahead.” The Nikkei tested resistance and only needs to exceed last week’s high to complete a trend change to up to join the other three stock indices that we trade at LS Trader in long-term uptrends.
The energy markets saw further weakness this week but remain in long-term uptrends, except for Natural Gas.
The long-term trend remains up for metals, but they all are showing corrective price action at present with no directional bias.
The grains sector remains weak with all markets except for Oats in long-term downtrends.
The currency markets remain mixed, but with the long-term trend still favouring the Dollar against most of the majors.
The long-term trend for the British Pound remains up, and it’s possible that the recent correction is at an end and that a right shoulder low of a head and shoulders bottom formation has been completed. It is premature to front-run head and shoulders patterns and waiting for a breakout above the neckline is standard procedure. The RSI is testing 60 again having just about held the 40 support level during the last week of April.
## Interest rate futures
Interest rate futures continue to trade in a choppy, sideways mess in the short-term, but remain in long-term uptrends. The only market in the sector within range of a change of long-term trend to down is the UK Long Gilt.