Sunday, January 7, 2018

Week Ahead 2

Equities stared the year on a strong note. US indices are breaking the upper trendline, both are outside the BB (50,2 - EMA).  

The DAX is approaching the record high 13500 strong resistance. Should it break out the measured move target is around 14250. 

Based on the valuation data compiled by StarCapital the gap between US ant Europe is widening. This suggest that buying DAX-SP500 spread on longer term is something to consider.

Basic materials and Technology were the leaders, wheres Utilities the laggards in last shortened week. 

XLU is at a major support.
XLP is at a major resistance.

XLV broke out. The measured move target is around 87.5.

On the other hand XBI couldn't make the break.

XLF had a nice completed pennant.

US yields, especially the 2y are rising. The 2y-10y spread is at 0.50% again.

The 2y spreads are declining especially in case of Australia and Japan.

Canada is the only exception where good jobs data pushed the yields higher.

DBC is in a strong uptrend breaking the 16.50 resistance.

DBA retested the break and the bearish trendline.

SGG is at the top of the sideway channel and at a bearish trendline resistance.

DBB is retesting the breakout.

Gold had broken out from the 1300 area. 

EUR is struggling with the 1.2100 resistance.

GBP is facing with a very stron resistance area.

AUD is at a resistance. Yields suggest that is should not break it.

JPY is in the middle of a smaller range. At 114.50 there is a strong resistance. Yield differentials suggest the test of this level.

Strong economic data helped CAD to break the 1.2500 strong support. We might see the test of the next support at 1.2050.

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