The long-term trend picture has not changed despite the trading activity this week. The long-term trends are up for stocks, metals, interest rates, and grains. The long-term trend remains down for the Dollar and energies.
From last week: “The long-term trend remains up for global markets. US markets remain above medium-term support, and until that breaks, bearishness is premature.”
Stocks appear to have put in a short-term bottom on the 30th October and have rallied since. This week has seen both the S&P 500 and the Nasdaq 100 rally to test the upper trendline of a symmetrical triangle. If the breakout is successful, we may see a test of the all-time highs.
The metals markets could be on the move and may be set to test their recent highs. The long-term trend remains up across the sector.
The energy markets recovered sharply following their decline to their lowest levels since May. This week’s rally was not able to change the long-term trend to up, so the trend remains down.
Dollar weakness resumed this week as the Dollar moved lower across the board. The long-term trend remains against the Dollar.
Interest rate futures
Interest rate futures fell to a new low for the current move on Wednesday but then reversed sharply, printing a multi-bar key reversal day. This keeps the long-term uptrend intact for now.