SGT Chart Book

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The main theme of the past week has been the debt ceiling negotiations, and at the time of writing it appears that there is an agreement in principle (big surprise there!). Legislators need to put this in place and sign off on the final agreement before the 5th of June deadline.

US 10-Year Note

This is trading towards the top end of the identified range as we have been indicating the past couple of months.

US Equity Markets

There are several charts that we think are very interesting to take a look at this week after the tech sector’s show of strength last week. The first is the number of companies making up over 50% of the Nasdaq 100. Market analysts often cite breadth when looking at the internal and strength of any market movement, but we will leave you to draw your own conclusions.

The only other times when the tech sector surged over 4% while the overall stocks declined was at the onset and in the middle of the last tech bust.

This chart illustrates the relative price performance: Is this all A.I.?

We have highlighted last week’s price action on the following two hourly charts for the Dow and Nasdaq 100. A picture is worth a 1,000 words...

XAUUSD

After alerting readers to the potential completion of the 5-wave up-leg and bearish divergences, we have seen gold slip to test the uptrend line support around the 1935 level.

EURUSD

The dollar showed its strength during the past week with the market following the downtrend line seen on the charts.

USDCAD

We have seen the breakout above the trend line resistance level after sharing the chart in last week’s report which seems to be supportive of USD strength across the board.

BTCUSD

Not the most exciting chart of the week as bitcoin continues to consolidate above the key level shown on the chart below.

XRPUSD

Is Ripple leading the way? As we can see below, it has just broken above the trendline resistance on daily charts.

Final Note

The only markets open at the time of writing the report are crypto. It will be especially interesting to see the price action on Sunday at 5pm and 6 pm when the markets open given it’s a long weekend in the US and the UK.

Until next week, happy trading.

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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