U.S. is suffering from the Summer Doldrums.
Dow Jones -0.12%. SP500 -0.41%. Nasdaq -0.71%. Small Caps +0.02%. Banks strong +2.32%.
SP500 and Nasdaq both show bearish engulfing candles after opening on the positive side. Inflation data came in as expected and the major indices responded in positive fashion but that turned to intra-day selling.
Dow Jones.
The past three days have seen the Dow Jones flatten out into a short-term sideways consolidation.
The three Super-trend lines are all yellow - medium-term bullish.
Longer term the DJ remains in a trading range.
The Index is sitting right on the Point of Control - a level it has touched nine times since the 7 June.
Next week will be a short week with Independence Day on 4 July.
Commodities.
Commodities Index -0.32% and shows a bearish engulfing candle. Energy -0.55%. Base Metals +0.65%. Agriculture +0.68%. Gold flat +0.01%.
Sydney SPI Futures show a negative result -0.45%. That should mean a weak opening on Monday.
Goldand Interest Rates
Gold has been in an unusually long sideways trend since early April.
The range is quite tight for the precious metal. From low to high is ~6%
From mid February to early April, POG saw a rise of >20%.
There tends to be a negative correlation between interest rates and gold. At this stage, with Gold sliding sideways, it seems to be saying there will be no interest rate changes in the medium term, whereas, earlier in the year, POG was saying that interest rates were going lower. Stay tuned.
RB
(20min delay)