Markets are very choppy at the moment and not suited for longer-term trend trading. There is great uncertainty about the ongoing economic impact of Covid-19 and the S&P500, despite the recent bounce, still has potential to track the same bearish route seen during the GFC.
The US$ continues to creep higher but stocks received a boost as Oil pricing recovered. Gold is also higher and gave a new Bull Flag breakout from yesterday’s chart pattern.
Last week: It was a relatively quiet week for trend line breakouts but I suspect traders around the world are watching the US stock majors of the S&P500 and DJIA to see how these indices react at looming key resistance: success might allay fears of another Global Financial Crisis-style pullback but failure might bring deja vu […]
Both FX indices have closed with Spinning Top weekly candles extending the theme of ‘indecision‘ that has plagued FX markets of late.
The US$ and S&P500 index are trading near major resistance zones as the week comes to an end. This is keeping many of the trading instruments that I monitor in range-bound activity. However, some late news about plans to re-open parts of the US and about a Covid-19 drug have helped to lift risk-on with […]