The foremost market mover for the week's trading session was the Federal Reserve monetary policy conference. Much weaker than anticipated retail sales in the United States and China, and below-expectancy money supply data and lending from China added to the unfavorable market sentiment.
In the US, each of the leading indices sprang back from last week's declines and climbed more than 2.0% this week's session, making clear that the buy-the-dip approach was nevertheless alive and well. The broad S&P 500 index with +2.7% and Nasdaq Composite with +2.4% set epoch-making intraday and closing new record highs while the DJI Average with +3.4% and small-cap Russell 2000 +4.3% bettered with significant gains.
All eleven S&P 500 sectors added to the new record-setting advancement, including the energy sector posting +6.7%, financials sector print of +5.3%, and industrials sector marking at +3.0%. These were the sectors atop the sector positions after a trio-band of dismal showing last week—the lone utilities sector with +0.7% not reached expectations on a relative basis.
The S&P 500 index reclaimed its completed Inner Index Rally and Key Res of $4,255 on Tuesday, which set the condition for the rest of the trading week given that these key technical levels have given an award to buyers over the past fourteen months as it progressing to our Outer Index Rally projection of $4,333.
The stock market ignored a much than expected new home sales release for last month and grew better tolerance for the labor market to recover and inflation ratio to the peak. The core-PCE Price Index for last month increased 0.5% m/m, moving it yr/yr up to 3.4%. Weekly initial jobless numbers stayed over 400,000 for the second consecutive week.
In market action elsewhere, the US Treasury Ten-year yield climbed nine basis points to close at 1.54%, while the Two-year yield rose one basis point to finish at 0.27%. This curve-steepening movement added additional energy to the bank stocks overall.
In the Gold market this week, we observed the July option expiry contract. The event that 82,954 call options were deserted illustrates why Gold metal was promoted to nosedive from June 10th $1,900 to the current $1,780. Also, with the half-year ending next week, the bullion banks traders will favor keeping prices (favorable for them) suppressed for mark-to-market valuations.
On Friday, over $2.4 billion worth of Bitcoin options contracts and about the same amount of futures contracts expired. This event had a significant impact on the Bitcoin price, and so it seems that most of the contracts that expired did have negatively affect the coin price.
The classic Trade Selecter System projection completion is the Outer Coin Dip market at $29,456 since May 24th. Without firm ending conformation (BARC), it is prudent to avoid going long from these prices.
Aggressive buying (Higher risk) can be executed at a price range from $30,430 - 29,450 with an initial target of Mean Res $35,630.