Seven Days Ahead weekly Multi-Asset Technical Strategies 21st August 2018

CURRENCIES

Dollar strength is the stand-out feature. And, more than that, the completion of well-constructed patterns (very recently against the Euro) suggests a good deal more to come. The exception is the Dollar Yen. Sterling Euro has signs of possible further Sterling weakness, but watch our levels there.

STOCKS

Stocks are interestingly poised: we note a vulnerability in the structure of the FTSE and EuroStoxx (without any clear breakdown yet) and the close re-approach of Prior All Time Highs in the S&P. The bulls need those S&P Prior Highs to be superseded for comfort;on the other hand the bears need the FTSE and EuroStoxx to confirm a breakdown for clarity and THEIR comfort. So watch very carefully how the various markets behave at these current levels.

BONDS

Note the close approach of the Bunds to breakout and thereby a completion of the large and impressively constructed potential bull continuation triangle there. So too, is there scope for the Gilt to complete a similar pattern. The TNote is sidelined for the moment.

COMMODITIES

Oil remains testing important short-term support notwithstanding the long-term bullishness we remain wedded to. Gold continues on a well-set bear trend.


For urgent specific inquiries you are welcome, as always, to contact us at any time.

Best regards,
Mark

 

Mark Sturdy
Director
SEVEN DAYS AHEAD
124 Regents Park Road
London NW1 8XL
+44 (0) 7849 922573

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