SGT Chart Book

Market Observations, SGT Chart Book|24 Jul 2023

Wednesday 26th July will see the Fed announce its next interest rate decision. The consensus is for a further 25 basis points to bring rates up to 5.5%. This week also sees a number of key companies post their earnings results.

Gold prices reached their highest levels in 2 months last week, driven by US$ weakness and expectations that the Fed would conclude its rate hiking cycle this week.

USA30 (Dow Jones) Hourly

Looks like we are seeing the Dow play a bit of catch up with the SP500 and Nasdaq with the Dow putting in a 10-day winning streak, the longest since 2017. Last week saw the following returns in Major US equity indices.

SP500 + 0.69%
Dow Jones +2.08%
Nasdaq - 0.57%

Volatile trading was seen on Friday as there is an unusual rebalancing of the Nasdaq 100 taking effect on Monday.

USA30 Daily

Market rally hits 2023 highs.

Tech Stocks

One market commentor suggested that some funds are running into limits as to how much more big tech stocks they can purchase, without breaking “diversification” rules. We note also that the combined market capitalization of the following: AAPL, MSFT, GOOG, AMZN, NVDA, TSLA, 6 stocks represent 57% of the Nasdaq 100 total.

AAPL (Apple) and NVDA (Nvidia) show very clear bear divergence on the daily charts.

NVDA

US-10year

We have removed the channel that had dominated the US-10 Year chart for some time. Overhead resistance levels to watch.

DXY

The Dollar index had broken below the previous lows around 100.80 level to encourage the US$ bears, only to be stifled by a move back above this level.

EURUSD

The red line of the daily chart below represents the longer term trendline from the weekly chart that had been broken. The 1.1080 level should hold if the Euro is to move higher from here.

GBPUSD

Sterling has carved out a nice up-channel for technical traders to enjoy.

BTCUSD

Continuous range trading is the theme in the Bitcoin space. What will be the catalyst to move us out of the range though?

Until next time - happy trading all,

SGT Trade Desk

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.