5 June 2020 – Weekly Review – Indices surged

Indices/Indexes as of close of 5 June 2020

Summary (Weekly Chart)
$DJT – UpTrend. /YM – UpTrend. /RTY – UpTrend. /NQ – UpTrend. /ES – UpTrend.

/CL – UpTrend. /GC – UpTrend and in a preliminary Squeeze. /ZB – UpTrend. HYG – UpTrend.

$DXY – DownTrend and in a Squeeze. EUR/USD – UpTrend and in a Squeeze. USD/JPY – UpTrend and in a nested Squeeze.

Summary (Daily Chart)
$DJT – UpTrend. /YM – UpTrend. /RTY – UpTrend. /NQ – UpTrend. /ES – UpTrend.

/CL – UpTrend. /GC – DownTrend and in a Squeeze. /ZB – DownTrend. HYG – UpTrend.

$DXY – DownTrend and in a weekly Squeeze. EUR/USD – UpTrend. USD/JPY – UpTrend.

Market Internals (Daily Chart)
Market Sentiment – Bullish. Put/Call ratio – 0.577. Market Breadth – sloping upward showing more gainers than losers. Volume Acc/Dis – sloping upward and showing accumulation. Vix – 24.52 and Vix Futures – 25.42. Skew – 129.87.

The Nasdaq 100 broke out to new all-time high and all the indices surged. Oil continues to power upwards as the economies around the world opened up. Gold is pulling back even as the US dollar continues its downtrend. As the stock market does a V-shape recovery, there is less attraction to invest in Gold as a safe haven.

As the US economy opens up, there should be more good news relating to the economy. Employment figures indicate more hiring. The prognosis is a continuing upTrend for the indices.

Relative Strength – Sectors On a 3-monthly lookback, the relative strength order of the S&P ETF 500 sectors are XLK, XLY, XLE, SPX, SPY, XLB, /ES, XLP, XLV, XLI, XLF and XLU.

On a 12-monthly lookback, the relative strength order of the S&P 500 ETFs are XLY, XLK, XLV, XLB, SPY, SPX, /ES, XLP, XLI, XLU, XLF and XLE.