Equities began the week with a bounce, the SPX settling +43pts (0.9%) to 5010.
sp’weekly1b
Summary
SPX: Weekly momentum is STILL increasingly negative, and will remain a restraint on ALL bounces into mid May. At best… upside to around 5200, before resuming lower. Natural target is around 4700 by late May.
The threat to anyone trying to trade a bounce to 5200, is overnight ‘spooky news’… not least from the middle east.
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Looking ahead
Tuesday will see PMI serv’, PMI manu’, new home sales
Earnings: GM, UPS, GE, PEP, LMT, FCX, SPOt, RTX, JBLU, HAL, TSLA, V, ENPH, TXN, STLD, CB, STX, BKR, WFRD, MAT
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Final note
Geo-pol chatter from the Judge and Macgregor.
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The trinity
WTIC… appears to be building a floor from around $80. Basic upside are the $85s… as printed last Thursday night.
Gold/Silver… daily momentum only turned negative today, as the setup favours the metal bears for at least another few days.
Broadly… nothing has changed. I see zero reason not to expect oil to spike on the next escalation in the middle east. Further… Gold/Silver should resume upward, with grander targets of $3K and $40.
Goodnight from London