SGT Chart Book 03.06.24

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US equities put in a late Friday afternoon rally, with the Dow up 575 points. The Dow, SP500 and Nasdaq all end the week lower, despite this The Nasdaq ended the month up 6.9%.

The Dow Jones Industrial Average finished May up 2.3%. The S& P 500 end the month 4.8% higher.

The Fed’s preferred inflation gauge was announced. The personal- consumption expenditures price index broadly matched expectations, posting a 2.7% gain in April from a year ago.

The Chicago PMI fell deeper into contraction territory to register its lowest level in four years.

The yield on the US 10-year note ended the week at 4.51%, down from 4.55% Thursday and the year-to-date high of 4.70% hit in late April.

In Europe, data showed core inflation accelerated in May. The European Central Bank is expected to start cutting rates next week, but stickier-than-expected inflation could force it to slow down the pace of further cuts.

USA30

The Dow has been lagging the other major indices that are tech heavy. YTD The Dow is up 2.6% while SP500 is up 10.6%. The hourly chart below shows the aggressive buying that came in the last hour of trading on Friday, 31st May.

US10 YEAR RATES

After a mid-week rally in rates, yields closed lower on the week.

US DOLLAR INDEX (DXY)

The 10-year US rates and DXY have traded very similarly in the last 6 months. Trendline support being tested.

GBPUSD

Cable as it is commonly known, set to break out of chart pattern.

XAUUSD

Unable to hold on to the recent gains, as it reported that Hedge funds build largest long postion in over 4 years.

XAGUSD

On the fundamental side of the equation, silver production continues to fall, down over 40% from its highs. Technically charts still look constructive for further moves higher in the longer term.

US OIL

Breach of down sloping trendline resistance saw a rally up to just above $80, before the next wave of selling. The head and shoulders pattern mentioned last week is still valid.

BTCUSD

Trendline support currently contains selling pressure. BTC ETF’s see 13 days straight of net inflows.

Join us next week, for more market insights.

 

Happy trading,
SGT Trading Desk

trading@sgt.markets

Disclaimer: Trading Desk Observations are not trade recommendations. The purpose of these charts is to bring to your attention potential chart patterns you may wish to monitor.

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