All major indexes are currently facing substantial technical resistance levels that exceed their current traded levels. Contribute to that growing financial uncertainty and fears about an economic downturn, and the bounce may be limited.
The equities markets enjoyed a strong run between May 23-27, with tech-heavy NASDAQ ETF (NASDAQ: QQQ), up more than 7% and the S&P 500 ETF (NYSE: SPY), up more than 6.50%. The price action was unstable today, and although the J trade session isnt over yet, the weekly candlesticks indicate a near to recentlys open.
Weekly chart of QQQ (NYSE). Source: TradingView
The rate of cryptocurrencies is down again
Although the crypto market closed reasonably flat, it was down for the week and extended its losing streak to 9 consecutive weeks. While some altcoins remained in the green this week, Stellar (XLM) and Cardano (ADA), both saw half to 70% of their gains eliminated.
The cryptocurrency markets overall market capitalization is simply above $1.20 trillion, which is extremely close to the important $1 trillion mark.
Weekly chart of the total market capitalization for crypto. Source: TradingView
The price of oil continues to rise
NYMEX: CL light unrefined futures continue to increase, and could close at 14-year highs. These levels have not been seen because late July 2008. Oil has actually gotten over 20% in the duration April 11 through June 3 and is presently just listed below $120.
On June 1, crude oil inventories data revealed a much bigger drop of -5,000,000 barrels than the anticipated -1.35 million. The oils rise has not been visited the recent agreement between OPEC+ and almost double production.
Weekly chart of oil futures (NYMEX). Source: TradingView
Food commodities tank
CBOT: ZW for wheat futures and CBOT: ZC for corn futures are both down this week by -10% and 66%, respectively. These markets are likely to be affected by extreme overbought conditions that have actually triggered a technical pullback. This market continues to be afflicted by international fears and uncertainties about food security and shortage.
Weekly chart of wheat futures (CBOT). Source: TradingView
Dollar healing might be in the works
The DXY market is typically seen by investors and traders of cryptocurrency. The DXY is a market that goes up when Bitcoin (BTC), and other altcoins fall.
The DXY could continue to rise greater due to continued economic unpredictability and some weakness in the labor market.
The greenback, like wheat and corn is experiencing a technical pullback due to prolonged overbought conditions. In the Ichimoku Kinko Hyo, the United States Dollar Index has actually a suggested close of the week that is greater than the TVC: DXY, with a minimal gain 0.3%.
The DXY gained more than 1% after a strong technical bounce from the Tenkan-Sen weekly Tenkan-Sen, but the bulk of those gains have now been lost. Although the DXY might drop below the 100 level, near the weekly Kijun-Sens critical mark, the covert bullish divergence in the composite index and chart could avoid additional downside pressure.
This is not always true, but the DXY ought to still be considered a flight to security. It is presumed that market individuals fear and doubt when money flows into the dollar.
Next weeks major financial information to be watched
CBOT: ZW for wheat futures and CBOT: ZC for corn futures are both down this week by -10% and 66%, respectively. These markets are most likely to be affected by extreme overbought conditions that have actually triggered a technical pullback. This market continues to be pestered by international worries and unpredictabilities about food security and deficiency.
NYMEX: CL light unrefined futures continue to rise, and could close at 14-year highs. Oil has actually gotten over 20% in the duration April 11 through June 3 and is currently just listed below $120.
June 7, Canadian balance of trade data and Ivey PMI information. Change in US API Crude Oil Stock. June 9: European Union Central Bank rate of interest choice. United States preliminary unemployed claims.June 10: Canadian joblessness rate. Core inflation (MoM), real and core inflation rates in the United States, as well as Michigan customer sentiment.com. You must do your research before making any financial investment or trading decision.