This week’s financial spread betting update is now available and can be read by clicking here.
Following the recent very strong run seen in stocks we are seeing some correction, as we have been expecting. The markets have not quite reached our target at 1355 on the S&P 500 but are moving lower already this morning. That said, it is still early days and that are a couple of factors, which could change that later in the day. These are:
- Monday’s for much of the past 2-3 years have generally been bullish
- The U.S. markets don’t seem to like it when moves happen outside of their market opening hours and such moves are often reversed.
Considering the above things could still go either way today but certainly 1355 will need to be taken out for the bullish scenario to continue in the short term. A correction or consolidation would not be particularly surprising.
The down move in stocks has as ever correlated with a gain for the dollar as stocks and the dollar are generally inversely correlated. We did write about signs of buying coming in on the dollar index last week due to the presence of a series of lower shadows on the daily candles. Obviously we got the inverted shadows on the Euro last week indicating a rjection of higher prices, so this morning’s move lower is not all that surprising.
Gold has also continued with weakness, again this follows on from the large bearish engulfing pattern formed on Friday. The trend remains down for gold, up for the dollar overall (albeit with a couple of exceptions) and up for stocks.
This week’s financial spread betting update begins with: It’s been another week of risk on, which has seen stocks continue in bullish mode and the dollar continue its recent weakness. The trend continues to be up for stocks and is still up overall for the dollar but that may be going to change. Commodities for the most part have continued to benefit from dollar weakness………continue reading by clicking here