Friday's Market Minute: Treasuries & Metals Trounced

The S&P 500 futures contract continued its ascent into new all-time highs on more Trade War optimism this week, though some of this enthusiasm was dashed by yesterday afternoon amid conflicting reports about whether the U.S. and China actually plan to draw down tariffs in a phased agreement.

Nonetheless, barring a major sell-off today, the /ES is likely to form a weekly candle with a close above the upper level of a Rising Wedge pattern that has been forming since January, 2018. The contract’s weekly RSI also looks to be breaking upward through a trendline that has been sloping down since September of last year, which would suggest greater credence to this move up.

Additionally, the Russell 2000 contract also surpassed its previous highs from July and September, though it still has yet to see a significant breakout of the range between 1,450 and 1,600 in which it has traded for almost all of 2019. But perhaps more significant than the new all-time highs themselves were the shockwaves that the move sent through the precious metals and bond markets, squashing Gold Bugs and Permabears alike with hefty declines in Gold, Silver, and Platinum futures this week, as well an 11% surge in the Ten-Year Yield since Monday.

Regardless of what you think about the headlines, this move away from risk-off assets suggests market participants could be preparing for another leg up.

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