Stocks rallied throughout the week until the new all-time high was posted on Friday, and the market closed down for the day, printing a dark cloud cover on the daily chart for the Nasdaq 100. The S&P 500 was a bit weaker on Friday, completing a bearish engulfing pattern. Both patterns suggest weakness for 3-5 days next week, but the long-term trend is firmly up.
The Dax and Nikkei continue to lag and have yet to complete breakouts.
Gold fell sharply on Monday and Tuesday and tested support on Wednesday before rallying for the rest of the week, remaining in a long-term uptrend.
The energy markets remain weak overall, with new lows for the current move being posted, as well as some corrective strength during the second half of the week. The long-term trend is down for the sector except for Brent Crude, which may test trend-defining support this week.
It’s been a decent week for the Dollar after gains were seen against the majors. EUR/USD violated the January low at 1.1030 this week, meaning that if the January effect is to hold again this year, 1.1293 will not be exceeded and the trend will, therefore, remain down.
The Aussie also fell to a new low for the current move. GBP/USD broke to the downside from a symmetrical triangle pattern and may continue slightly lower. However, the long-term trend is still up for the Pound.
Interest rate futures
Interest rate futures made new highs for the move on Monday but then fell for a few days before reversing from Thursday’s lows. Friday completed a 3-day morning star bullish reversal, keeping the long-term trend up.