SGT Chart Book 27.05.24

sgt_chartbook

Memorial Day weekend in US.

Last week saw the Nasdaq and SP500 reach new record highs while after the euphoria of Dow breaking above 40,000, it suffered its worst week since March 2023. Fed minutes sparking continued inflationary fears and subsequently a lower probability of interest rate cuts.

A hot topic is market concentration again with over 50% of the year-to-date gains resulting from just 4 stocks in the SP500. 39% of the SP500 market capitalization gains are due to Nvidia. Speaking of Nvidia, the company release earnings on Thursday, with stock prices gapping up and adding over $200 billion to market cap. See chart below.

Yields on government bonds rose for the week. The yield on the 10-year U.S. Treasury note climbed to 4.471% Friday, from 4.419% one week ago.

US Dollar mostly higher for the week. Bouncing off support.

Precious and base metals suffered losses after record setting all-time highs the week before in Gold and copper. Copper had worst losses in over 13 years and Gold’s worst week in past 8 months.

ETH Caught a bid after SEC approved ETF’s.

Oil is lower during the week testing longer term support levels.

U.S. markets will be closed Monday for the Memorial Day holiday.

USA30

Subdued bounce after Fed minutes/data induces sell off.

USA500

Tech/AI helps out. Back above the 200-day MA.

USA100

Bearish engulfing pattern on daily charts after Thursday new highs.

Definition: Comprising two consecutive candles, the pattern features a smaller bullish candle followed by a larger bearish candle that engulfs the first. This formation is considered a strong indicator that the prior upward momentum is waning, and a reversal is on the horizon.

NVIDIA

WOW!! We had commented a few weeks ago that if you like it at $950 then you have got to love it at $750 after the selloff in April.  A number of analyst’s are now looking at $1300 area as new price targets.

US10 YEAR RATES

Rates backing up to S.T resistance zone, with futures markets now pricing only a 40% chance of a rate cut this year.

US 2 YEAR RATES

Retest of previous trendline around the all-important psychological 5% level.

US DOLLAR INDEX (DXY)

Bounce off trendline support.

XAUUSD

After closing for first time ever above $2400, last week saw the worst decline in over 8 months. Longer term technical still remain supportive, but short-term needs to beware.

XAGUSD

After closing for first time ever above $2400, last week saw the worst decline in over 8 months. Longer term technical still remain supportive, but short-term needs to beware.

XAGUSD

Retesting $30 per ounce level on current pullback.

USOIL

Is this a potential Head and shoulders formation.

BTCUSD

Hard to find a bear, when reading through market commentary. Trendline support comes in around $66k, key will be taking out the highs around $73k, for technicians and chart followers.

ETHUSD

Breach of trendline resistance. SEC approval of spot ETF.

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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