5 Charts to Pay Close Attention to This Week
The S&P 500 finally rallied for more than a handful of days moving higher by near 10% after putting in a short-term bottom on May 20th.
Last week we saw price consolidate at an important technical area (4100/4150) that kept a lid on the current rally.
Will this area continue to be a problem for the bulls?
I'll be watching closely early in the week to see if this rally has more legs or rolls over towards 4000.
10-Year Treasury Yield
Inflation and interest rates continue to dominate the headlines and conversation with the core inflation rate in the US at 8.3%.
10-year yields are consolidating at a trendline that has been intact since the early 1980s.
Where do rates go from here?
Cryptocurrencies have been a hot topic lately with Terra (LUNA) crypto token crashing from $120 to $0.02 within 48 hours back in the middle of May.
Bitcoin has been holding its own and continues to trade in a tight range right near 30K.
At some point price compression will lead to price expansion. But in what direction?
Crude oil WTI just keeps on keeping on.
The price of crude has been trading between $100 and $110 for several weeks after spiking to $130 on the Russian invasion of Ukraine.
You can see how price has been volatile around the old highs ($115) that set a ceiling on price from 2011 to 2014.
With China easing lock-down restrictions and the summer driving season coming into play where is price headed next?
Right now the path of least resistance looks to be higher.
Oil and Gas Service Stocks
Energy stocks, or more specifically the oil and gas producers (XLE) have been getting a lot of attention especially after they broke out of a long-term downtrend back in January. But what about energy service companies?
Technically OIH (Oil Services ETF) has been fighting with a similar trendline as XLE (Energy Select Sector ETF) but has yet to breakout.
Is it time for energy service names to play some catch-up?
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Nothing in this blog post should be considered investment advice and is provided for educational and entertainment purposes only. The commentary and information represent the opinion of the author and are not recommendations to buy or sell any security or investment product. The author may or may not hold positions in the securities and investments mentioned. Full disclaimer here.