Financial Market Analysis: A Comprehensive Review of the Week
Introduction
After a hectic week and a notable shift by the Federal Reserve, it’s time to take a step back and evaluate the performance of various sectors and asset classes. We will delve into the analysis of the Family along with two commodity index funds and long bonds to devise a strategic plan for the upcoming week.
Granny Retail XRT and Granddad Russell 2000
- Granny Retail XRT remains within the range from May to September, showing stability.
- Granddad Russell 2000 presents a new range to watch from 215-225, with potential for small caps to benefit from lower rates.
- Both sectors exhibit promising signs on the weekly charts, indicating a positive outlook.
Big Brother Biotech and Bitcoin
- Big Brother Biotech faces a breakthrough over the 150 level in the upcoming week for sustained growth.
- Bitcoin’s leadership against the USD is improving, with potential for a rally towards 85k, pending the maintenance of support levels.
Family Sector Analysis
- Sister SMH stays rangebound, maintaining a weekly bull phase above the 50-WMA.
- Transportation IYT experiences a setback post FedEx earnings but needs to uphold its weekly bullish phase for market confidence.
- Prodigal Son Regional Banks KRE surpasses the 200-WMA, signaling a positive trend if it continues to hold above the 57 level.
Commodities and Long Bonds
- Long bonds TLT show resilience despite rising yields, suggesting a forthcoming rally.
- Individual commodities like and exhibit strong performance, reflecting potential growth opportunities.
- Focus on commodity funds DBA and DBC for insights into the market’s response to rate cuts and the metals rally.
Weekly Plan
- Monitor "inside" sectors like XRT, IWM, IBB, and IYT for clues on market direction.
- Watch for silver to clear $32.00, potentially indicating a shift in the silver-to-gold ratio in favor of silver.
- Keep an eye on long bonds for insights into the broader market trends and implications for commodities and equities.
ETF Summary
- SPY: 560 pivotal
- IWM: Range 215-225
- Dow: Potential island top formation
- Nasdaq: 465 support, 485 resistance
- KRE: 57 pivotal
- SMH: 230 support, 240 pivotal
- IYT: 67.00 support
- IBB: 145 support, 150 resistance
- XRT: 73.50 support, 77 resistance
- iShares iBoxx Hi Yd Cor Bond ETF: First close above the 200-WMA
In conclusion, the analysis provides a comprehensive overview of the financial markets, highlighting key sectors and assets to watch in the coming week. By staying informed and adaptable, investors can navigate the volatile market conditions and make informed decisions to secure their financial future.