Weekly Inter Market Analysis Sept 25-2016

See previous week Weekly Inter Market Analysis.

Original post from https://mystocksinvesting.com


SPY rebounded from the resistance turned support zone. SPY is still trading in a Rising Wedge pattern and on uptrend after forming “higher high, higher low” chart pattern. Keep an eye on on key supports:

  • Resistance turned support zone: 211-213
  • Rising Wedge immediate support: about 210
  • Previous Head and Shoulders neckline support: about 204.
  • Rising Wedge next support: about 200



VIX retraces back to 12.3 – a complacent zone.


Sector Performance (SPDR Sector ETF)

  • Best Sectors: Utility (XLU)
  • Worst Sector: None
  • Note: Defensive sectors still lead the aggressive sectors.


SUDX (S&P US Dollar Futures Index)

SUDX is still trading within a Symmetrical Triangle and likely to be trading in a tight range until a breakout. No rate hike from last week’s FOMC statement. Next FOMC statement on Nov 1/2.



FXE (Currency Shares Euro ETF)

FXE is curently trading sideway and range bound. No rate hike from last week’s FOMC statement. Have to wait till next FOMC statement on Nov 1/2 before we can see the next big move.


XLE (SPDR Energy Sector ETF)

XLE broke down from the uptrend channel, rebounded and rejected at the 69.31 resistance. Short term XLE is bearish. Next support to watch is 64.74. This support is quite strong as it has been tested for 5 times.



USO (United States Oil Fund)

USO is still trading in a Symmetrical Triangle. Keep an eye on the next move when USO is trading closer to the apex of the triangle. Watch next Wednesday Sept 28 Crude Oil inventories report.



TLT (iShares 20+ Years Treasury Bond ETF)

TLT rebounded and currently testing support turned resistance at 137.51. If TLT is rejected as this level, it is a confirmation of trend reversal.



GLD (SPDR Gold Shares)

GLD rebounded from the support at about 125. This support has been tested 4 times previously. As the next FOMC statement only releases on Nov 1/2, there may be a potential for GLD to breakout from this rectangle consolidation to head towards 140.



Next Week Economic Calendar

Key events:

  • ECB President Draghi Speaks on Sept 26 Monday and Sept 28 Wednesday.
  • Fed Chair Yellen Testifies on Sept 28 Wednesday and Sept 29 Thursday.
  • China releases Manufacturing PMI on Sept 29 and Sept 30.




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