Weekend update - US equity indexes

It was a powerfully bullish week for US equity indexes, with net weekly gains ranging from +10.1% (Transports), +7.1% (NYSE comp'), +6.8% (Dow), +4.9% (SPX), to +3.4% (Nasdaq comp').


Lets take our regular look at five of the main US indexes (monthly candle charts).

sp'500

Nasdaq comp'

Dow

NYSE comp'

Trans

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Summary

All five US equity indexes settled net higher for the week.

The Transports is leading the way higher, with the Nasdaq trailing.

The Nasdaq comp' broke a new historic high.

All five indexes have re-taken their respective monthly 10MA.
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Looking ahead

A pretty light week is ahead, with just a handful of notable earnings, and a few pieces of econ-data. Whilst there will be an FOMC, there will clearly be no change in policy.

Earnings:

M - SFIX
T - TIF, CHWY, GME, FIVE, AMC
W - GES, RRGB
T - ADBE, LULU, PVH
F -
-

Econ-data:

M -
T - JOLTS, wholesale inventories
W - CPI, EIA Pet', US T-budget

FOMC announcement 2pm, with a press conf' at 2.30pm.

T - Weekly jobs, PPI, Fed bal' sheet (4.30pm)
F - Import/export prices, consumer sent'
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The Longest Day (1962)

Final note

May saw the SPX and Nasdaq comp' settle back above their respective monthly 10MA. Under my criteria, that made for a bullish monthly settlement, and changed the m/t trend back to bullish. This past week has seen other indexes follow.

A multi-week retrace is due, and whilst we might break back under sp'3K at some point, I do not expect any bearish monthly settlement (under the 10MA). Any cooling wave/retrace is thus to be seen as such. I hope that is (as Wonka might say)... clear as crystal!

Strawberry full moon

I can understand if some saw Friday's equity gains as a case of moon-madness, but the employment data was a distinct improvement. A massive economic recovery is underway, with the Fed activity preventing any mid/upper tier corporate bankruptcies. By year end, perhaps half of the -40% collapse in GDP will have been recovered. That will still make for a broken society and economy into 2021.

With further QE and zero rates, I will merely re-iterate, I see long gold and the related miners, as the most straight forward trade into 2021. Be careful out there... in the twilight zone.


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Have a good weekend
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*the next post on this page will likely appear 5pm EDT on Monday.