13 September 2019 – Weekly Review – A confusing week but bulls dominant

Indices (Weekly chart)
Dow Transportation closed at 10813.62 with a big bullish marubozu candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Weekly trading range – 553.81. Fractal Chaos Band – Closed within its FCB. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and rising. Short Cycle Wave – positive and rising. Market direction – Strong UpTrend. Momentum – Strong Upward. RSI – 57.2.    

Dow Industrial closed at 27219.52 with a bullish candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Weekly trading range – 589.68. Fractal Chaos Band – Within its FCB. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and rising. Short cycle Wave – positive and rising. Market direction – Weak UpTrend. Momentum – Strong Upward. It is in a monthly Squeeze. RSI – 59.4.

Russell 2000 closed at 1578.1382 with a big bullish candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Weekly trading range – 84.2853. Fractal Chaos Band -Within its FCB. Long Cycle Wave – positive and rising slope. Medium Cycle Wave – negative and rising slope. Short Cycle Wave – negative and rising slope. Market direction – Strong UpTrend. Momentum – Weak Upward. RSI – 55.6.       

Nasdaq 100 closed at 7892.9546 with a spinning top doji candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Weekly trading range – 231.71. Fractal Chaos Band – Within its FCB. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and rising. Short cycle – positive and rising. Market direction – Weak UpTrend. Momentum – Strong Upward. RSI – 58.7.     

S&P 500 closed at 3007.39 with a bullish candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Weekly trading range – 63.73. Fractal Chaos Band – Within its FCB. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and rising. Short cycle Wave – positive and rising. Market direction – Weak UpTrend. Momentum – Strong Upward. RSI – 59.3.

Metals and Commodities (Weekly charts)
WTI Crude oil futures (CL) closed at $54.82 per barrel with a bearish candle below its 8 EMA, 21 EMA, 50 SMA and above its 200 SMA. Weekly trading range was 4.76. Fractal Chaos Band – Within its FCB. Long Cycle Wave – negative and rising. Medium Cycle Wave – negative and rising. Short cycle – positive and falling. Market direction:- Strong DownTrend. Momentum – Weak Upward. RSI – 45.2.

Gold futures (GC) closed at 1495.7 with a bearish marubozu candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Weekly trading range was 40.1. Fractal Chaos Band – Above its FCB. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and falling. Short cycle – positive and rising. Market direction:- Strong UpTrend. Momentum – Weak Upward. RSI – 70.2. Gold is still overbought on the weekly chart!

Bonds (Weekly charts)
Bond futures (/ZB) closed at 157’22 with a big bearish candle below its 8 EMA and above its 21 EMA, 50 SMA and 200 SMA. Weekly trading range was 6.9687. Fractal Chaos Band – Closed above its FCB. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and falling. Short cycle – positive and falling. Market direction:- Weak UpTrend. Momentum – Weak Upward. RSI – 55.3.         

High Yield bond ETF (HYG) closed at 87.14 with a doji candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Weekly trading range – 0.41. Fractal Chaos Band – Within its FCB. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and rising. Short cycle – positive and rising. Market direction:- Strong UpTrend. Momentum – Strong Upward. RSI – 58.1.

Currencies (Weekly charts)
The dollar index ($DXY) closed at 97.858 with a bearish candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Weekly trading range – 1.241. Fractal Chaos Band – Closed within its FCB. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and rising. Short cycle – negative and falling. Market direction:- Strong UpTrend. Momentum – Strong Upward. RSI – 53.1.

EUR/USD closed at 1.1071 with a bullish candle below its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Weekly trading range – 0.0182. Fractal Chaos Band – Closed within its FCB lowerband. Long Cycle Wave – negative and falling. Medium Cycle Wave – negative and falling. Short cycle – negative and rising. Market direction:- Weak DownTrend. Momentum – Strong Downward. RSI – 43.3.   

USD/JPY closed at 108.11 with a bullish candle above its 8 EMA, 21 EMA and below its 50 SMA, 200 SMA. Weekly trading range – 1.4989. Fractal Chaos Band – Within its FCB. Long Cycle Wave – negative and rising. Medium Cycle Wave – negative and rising. Short cycle – positive and rising. Market direction:- Weak UpTrend. Momentum – Strong Upward. RSI – 48.7.

Relative Strength – Sectors
On a 3-monthly lookback, the relative strength order of the ETFs are XLI, SPY, /ES, XLB, XLF, SPX, XLY, XLP, XLU, XLK, XLE and XLV respectively.

On a 12-monthly lookback, the relative strength order of the ETFs are SPY, /ES, SPX, XLY, XLI, XLK, XLP, XLF, XLU, XLB, XLU and XLE respectively.

Market Internals
Market Sentiment is bullish. Market Breadth is sloping upwards showing more gainers than losers. Volume Acc/Dis is sloping upwards showing accumulation. Skew is at 118.40. Vix is at 13.74 and Vix futures 14.46.

The Week Ahead
Market Sentiment and Market Internals are showing strength. Vix and Vix futures have come down and are below 14 and 15. Skew is normal. The market is rather news driven. The prognosis is for continued volatility but with buying pressure.

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