Last week we were anticipating a “sell the news” reaction from the markets, which came on Tuesday, under the guise of a 50+ point SPX drop. This was followed by relentless targeting of the February all time high (ATH), which continued for four straight days. The inability of the SPX to break decisively above the ATH, however, is consistent with our market breadth analysis, which indicates that the major indices are in a sideways/down phase. As the chart below shows, after the anticipated peak on Monday, market breadth has dropped to the middle of its range, and needs a couple more days to get oversold:

For the time being, both the daily and weekly trading signals are long*, and the ATH at 3397 remains in the crosshairs:

Last week we were expecting that a fresh round of stimulus measures would lead to a weakening of the USD. This came to pass, and the G5 reversed their course accordingly. USDCAD immediately staged a bearish reversal, and barely managed to finish the week at the downside weekly target:

*Please note that the signals are provided for informational purposes only. They are in effect as of the close on Friday and may change as soon as the markets re-open.

Charts, signals, targets and data courtesy of OddsTrader, CIT for TradingView and NinjaTrader 8