Weekly Seven Days Ahead Multi-asset Technical Strategies 17th July 2018

This week's Multi-Asset Technical Strategies is attached.

Very powerful signals arise when the charts of any one asset are aligned in all three time frames:

+ Dollar Yen
+ S&P 500
+ Oil

CURRENCIES

The Dollar is strengthening fast against the Yen in all time frames. But matters are less clear elsewhere. Sterling Euro is the most stagnant. The Dollar Euro is constrained by long-term resistance to the Euro and medium-term support for the Euro with the result that a short-term trading range has been created. Stand back! Short-term support for Sterling is apparent too - possibly allowing a retracement. But overall that currency remains vulnerable.

STOCKS

The S&P looks perky but lacks a clear upside break in all time frames with which the bulls can get hold of the market. The FTSE is long run supported and set up nicely in the short-term, but lacks a medium term trigger. The Nikkei is similarly modestly supportive to the bull case. European stocks are side-lined.

BONDS

The dithering of the US bonds on very long-term support continues to taunt traders. The price action for 2018 may yet turn out to be a short-term bottom formation! Elsewhere the bunds are bullish and poised to breakout to the upside though only the short-term is unambiguously bullish. Gilts are side-lined.

COMMODITIES

Oil has paused but there is, as yet, no real structural threat to the medium and long-term bulls. Gold needs a breakdown in the medium-term chart ( the levels are very close) to get the bears going by confirming the existing breakdown in the shot-term.


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

Best regards,
Mark

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Mark Sturdy
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