Indices

Past performance is not an indicator of future results Source: www.tradingview.com In the monthly chart above we show the long term relative strength between the major financial markets post the pandemic lows (dashed blue vertical): 1. Stocks [represented by the S&P 500 (SPX)]. 2. Bonds [represented by the iShares 7-10 Treasury ETF (IEF)]. 3. Commodities [represented by the Thomson Reuters CRB Index (TRJEFFCRB)]. The top chart shows the relative strength…

Past performance is not an indicator of future results Previously we suggested that the NAS100 was in a good position for participants to start banking profits. Since then the index has pullback and the overbought condition has normalised. The left chart shows the NAS100 daily. It is trading on the border between the bullish and neutral areas. The hourly chart is on the right. A bullish EMA crossover and stochastic…

This is the fourth day of November in which the German index hits new all-time highs, while the European Commission upgraded its growth forecasts for the year

Past performance is not an indicator of future results The UK100, FXCM's proxy for the FTSE 100, has consolidated since May (blue rectangle). However, the index has broken out. The weekly stochastic has moved into the upper quintile (aqua ellipse), and as long as it holds these levels, an underlying bullish momentum is likely to be present. This, as JPMorgan upgrades UK shares to "overweight." The bank maintains that current…

Past performance is not an indicator of future results The weekly SPX500 is trending up. It has a higher trough followed by a higher peak. At some stage, the current impulse (aqua line) will run out of momentum, and a correction will ensue. As long as the pullback finds support above the previous higher trough, the uptrend remains intact. The weekly RSI is not overbought, but the daily time frame…

Risk-off sentiment was prevalent during the Asia-Pacific session after China’s increased consumer and factory inflation, but European traders enter in better mood

September and November were the only months of this year, during which GER0 failed to register new all-time highs, but last week, it returned to its usual mode and set new records

Past performance is not an indicator of future results Source: www.tradingview.com FXCM's DAX proxy, the GER30, is in the bullish area on the daily chart on the left. The right chart shows the hourly time frame. The bullish hourly crosses of both the EMAs and stochastic potentially align short-term traders with the daily sentiment (red ellipses). Given the bullish triggers, a movement of the stochastic to the 80 level and…

Past performance is not an indicator of future results FXCM's US2000, its proxy for the small-cap Russell 2000, has broken out of its 2021 consolidation (blue rectangle). We have applied a triple moving average to test the trendiness of the breakout. The green short EMA is above the orange mid-EMA, and the orange mid-EMA is above the red long EMA. We also note that the EMAs are developing angle and…

Past performance is not an indicator of future results The NAS100 has had a terrific run since 12 October (blue vertical). From current close to low the index has appreciated about 9.5%. We refer to our previous article that considered the relative strength between the NAS100 and US30, which indicated that the NAS100 is generally inversely related to interest rates. Given this, the FOMC statement release and press conference today…

Please note that past performance is not an indicator of future results. The top chart shows the weekly relative strength of FXCM's Nasdaq contract, the NAS100, to its Dow Industrials proxy, the US30. A movement to the northeast suggests outperformance by the NAS100 and a movement to the southeast suggests outperformance by the US30. The lower chart shows the weekly US10Y yield. Both charts have a black 30-week simple moving…