The S&P 500 and its daily time frame, where we see an incomplete higher degree impulse that is in progress since January of 2016. In the German DAX, where we also see price to be unfolding a bigger, bullish impulse (the DAX and the S&P 500 trade in positive correlations).
After a rough go in 2014 and 2015, energy prices slowly began their upward ascent in 2016 after bottoming out under $30 per barrel early that year. Since then, Brent crude oil touched $70 before settling comfortably above the $60 mark this year.
The S&P 500 lost 5.7% last week in its worst week since January 2016. The market finished Friday’ssession making new lows; trading to 2586 before settling at 2597.75. The 200-day moving average came in at 2584.25 and kept things in check. The dollar has failed and is setting up for the next leg lower fundamentally and technically. If the dollar weakens, commodities priced in dollars strengthen and there are three on our list that we are watching most closely; gold, crude and silver. All three are set to capitalize on a more tumultuous geopolitical environment but each have many of their own reasons.
The S&P 500, gold, bitcoin and soybeans do chart bullish to me for next week. In contrast, the yen, euro, pound, Aussie, and crude show some bearish technical conditions for next week-quarter from monthly charts already noted. The short call spread weekly trade ideas in these is derived from bearish candlesticks in multiple time frames, volume and Fisher indicators, and range extension this week. clear. The Aussie, euro, soybeans and British pound show trending pivots for next week, and the yen (two-time frames), gold (two-time frames), Aussie, bitcoin and soybeans have range compression that also can produce wider weekly ranges than average.