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%. However, price action was volatile throughout the week. The weekly candlesticks indicate that the J trade session will continue until the close of last week’s open.
Weekly chart of QQQ (NYSE). Source: TradingView
All major indexes are currently facing significant technical resistance levels that exceed their current traded levels. Add to that growing economic uncertainty and fears about a recession, and the bounce might be limited.
The price of cryptocurrencies is down again
Although the crypto market closed relatively flat, it was down for the week and extended its losing streak to nine consecutive weeks. While some altcoins were in the green this week, Stellar (XLM) and Cardano (ADA), both saw half to 70% of their gains wiped out.
Weekly chart of the total market capitalization for crypto. Source: TradingView
The cryptocurrency market’s total market capitalization is just above $1.20 trillion, which is very close to the crucial $1 trillion mark.
The price of oil continues to rise
NYMEX: CL light crude futures continue to rise, and could close at 14-year highs. These levels have not been seen since late July 2008. Oil has gained over 20% in the period April 11 through June 3 and is currently just below $120.
Weekly chart of oil futures (NYMEX). Source: TradingView
On June 1, crude oil inventories data showed a much larger drop of -5,000,000 barrels than the expected -1.35million. The oil’s rise has not been stopped by the recent agreement between OPEC+ and nearly double production.
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 severe overbought conditions that have caused a technical pullback. This market continues to be plagued by global fears and uncertainties about food security and scarcity.
Weekly chart of wheat futures (CBOT). Source: TradingView
Dollar recovery could be in the works
The greenback, like wheat and corn is experiencing a technical pullback due to prolonged overbought conditions. In the Ichimoku Kinko Hyo, the US Dollar Index has an implied close of the week that is higher than the TVC: DXY, with a marginal gain 0.3%.
The DXY gained more than 1% after a strong technical bounce from the Tenkan-Sen weekly Tenkan-Sen, but the majority of those gains have now been lost. Although the DXY may drop below the 100 level, near the weekly Kijun-Sen’s critical mark, the hidden bullish divergence in the chart and composite index could prevent further downside pressure.
The DXY market is often viewed by investors and traders of cryptocurrency. The DXY is a market that moves up when Bitcoin (BTC), and other altcoins fall.
This is not always true, but the DXY should still be considered a flight to safety. It is presumed that market participants fear and are uncertain when money flows into the dollar.
The DXY could continue to rise higher due to continued economic uncertainty and some weakness in the labor market.
Next week’s major economic data to be watched
June 7, Canadian balance of trade data and Ivey PMI data. Change in US API Crude Oil Stock. June 9: European Union Central Bank interest rate decision. US initial jobless claims.June 10: Canadian unemployment rate. Core inflation (MoM), real and core inflation rates in the US, as well as Michigan consumer sentiment.com. You should do your research before making any investment or trading decision.
Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.