Indices Ascend to Record Highs as New Week Commences

By Tomasz Wisniewski|

Published: May 29 2023, 06:04 GMT+0

Indices Ascend to Record Highs as New Week Commences

As Monday unfolds, there’s a palpable buoyancy following the recent agreement on the US debt ceiling. Seasoned market participants were anticipating this outcome, so it didn’t come as a shock. However, it’s being conveniently leveraged as a pretext to bolster the markets. With the observance of Whit Monday, many key markets are closed, making it likely a tranquil day. The absence of any significant data releases on the calendar today further supports this expectation.

Friday concluded with a dynamic reversal in stocks. The SP500 rallied past the 4190 resistance level, reinstating it as support. Dow Jones affirmed the rebound from the lower border of the triangle, staving off the risk of a breakout and a sell signal. The CAC saw a robust bounce off the long-term uptrend line while the Nasdaq—well, the Nasdaq is skyrocketing akin to a SpaceX rocket.

In the realm of forex, we observe a minor correction in the USD, but it’s negligible. The dominant sentiment for the USD remains bullish. We’re also witnessing positive vibes for currencies from the Antipodes at the moment. This represents a reversal and a correction from the prior week, during which AUD and NZD were predominantly on the decline.

After a successful trading day on Friday, commodities are striving to carry that momentum into the new week. Precious metals and oil are inching upward ahead of the European trading session. Despite this rise, it’s currently only a correction. The overarching short, medium, and long-term sentiment remains bearish.