Weekly Market Review & Analysis For May 23, 2022

The S&P 500 market has snapped the seven-week losing streak over this week's rally, rising 6.6 percent after it hit its most down level since March 2021 in the previous week's trading session. With a 6.8 percent gain, the Nasdaq performed slightly better than the Dow Jones, which posted a +6.2% percent and barely snapped its longest losing streak since 1932.

The initial two days of the week witnessed some heavy volatility; however, the market bounced powerfully after the index managed to stay above the low of last week's Tuesday trading session.

All eleven index sectors ended the week with positive numbers, including the consumer discretionary with +9.2 percent was the sector in the lead after a poor performance in the previous month. In May, the sector has reduced its losses to 5.6 percent, primarily due to increased retail stocks after inflation worries subsided. The strength of consumer spending drove many of these stocks to their lowest levels since the beginning of the year. However, the past few days have seen renewed interest in retailers hoping that the worst of the recession will be over.

Many mega cap-stacks names performed some heavy lifting, with the names like Apple and Tesla, along with NVIDIA being a part of the rally in the second part of the week's session. The trio grew between 8.3 percent and 14.5 percent.

Despite the market weakening recently, the rebound in the stock market obscured another impressive performance by the energy sector, which gained 8.1 percent, extending its advance in May to 16.9 percent. Crude oil was back to its high in May by climbing to $115.08/bbl with a $4.72 gain, or 4.3 percent, to close the week.

U.S. Treasuries registered their third straight week of gains, pulling some muscle from the presumption that the Federal Reserve could halt its interest rate hikes in September. The Ten-year note yield finished the week at 2.73%.

The exact cause of the first week of bullishness ever since the end of March isn't entirely specific. However, all price action indicates the possibility of a continuous upside movement next week.

Market elsewhere

Market trading throughout the Asia-Pacific region has moved up a Friday trading session. H.K's Hang Seng Index climbed by 2.9 percent, and Japan's Nikkei 225 index increased by 0.7 percent.

The primary Eurozone stock market(s) have also been able to post the gains. There was a rise in the German DAX index and the French CAC 40 index, which both increased by 1.6 percent. The U.K.'s FTSE 100 index advanced small by 0.3 percent.

Euro market

The Euro gained quite a bit over the trading week, breaking over our Key Res 1.062 price level. There's a substantial amount of resistance in the 1.08 area. The euro market should come into the picture and provide a clearer view this week of how far this dead-cat bounce will take us. 

The currency is in a significant downtrend, and frankly, there's nothing to suggest that will change in the near future. Due to this, we can expect that we'll observe a lot of volatility behavior, but it is nothing new for the EUR/USD pair, which is currently known to be among the most volatile Forex currency.

This article was printed from TradingSig.com

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