Week Twenty-Nine provided a nice snap-back rally, leaving the S&P 500 (SPY) higher by +2.2%. That same move; however, left short-term technicals slightly overbought, setting price up for the Friday after-the-bell challenge poised by the failure of the US debt ceiling negotiations. Early Sunday evening has the S&P futures down -11 points, but let’s be real, any news early next week on a compromise could easily swing that back up. In that regard, note how oversold the US dollar is going into the new week on both short- and intermediate-term time frames.
Right Click “View Image” for Full Sized Graphic
Source: Mrkt_Commentary subscription service; prior weekly posts.
