This week’s financial spread betting update is now available and can be read by clicking here.
Following last week’s moves, the long term trends are mostly down for stock indexes, mixed for commodities but still down for the dollar, in spite of recent short term strength.
In early trading this morning the markets were mostly lower and the dollar higher but these moves have since been erased. Commodities, in particular Crude Oil were sharply lower on the open but have since recovered some of the losses.
Indexes were also lower this morning but have also recovered their losses. This week ahead could be an interesting one on various fronts with potential further weakness for stocks and commodities and a possible continuation of short term dollar strength. As we have written many times before, the key index is the S&P 500 and this index counts more than the others. For now the S&P 500 has held up better than the other indexes and the long term trend remains up. Should that change and further weakness seen for the S&P 500 that leads to a change of long term trend to down, we may see a significant move. This scenario would probably also lead to continued dollar strength and further commodity weakness.
Gold is another market that will come into focus having sold off sharply during the latter part of last week. This morning Gold dipped below $1500 but has also since recovered slightly and now trades at $1501. If the market closes below $1500 we may see a move lower to test the next support level at $1460.
This week’s financial spread betting update begins with:
Stocks managed to rise over the past week albeit in fairly volatile fashion. Early weakness was followed by a mid-week move higher and then weakness to close out the week. Commodities for the most part were lower and the dollar moved higher…