Make or Break: The GMI Top 5 Weekly Charts That Make You Go Hmmm...

In this week’s newsletter, we’re going to run through several interesting market charts on our radar...

As ever, much fuller and more in-depth analysis can be found in Global Macro Investor and Real Vision Pro Macro. Global Macro Investor is our full institutional research service and Real Vision Pro Macro is the sophisticated retail investor service, which is co-authored with leading research firm MI2 Partners.

Let’s dive right in.

GMI Chart 1 – NASDAQ

Next week will be a decisive week for markets as we work towards key support levels, the 200 DMA, and also trigger a daily DeMark 9 buy Setup with a wave 3 price objective of 14115 in place on NDX...

GMI Chart 2 – US Consumer Discretionary ETF (XLY)

XLY is also at a very interesting juncture having retested key support levels (previous resistance) with a DeMark wave 3 price objective higher of 174 – make-or-break time is next week – we need to hold these levels...

GMI Chart 3 – NASDAQ YOY% vs. ISM

We’ve had a more bullish take on tech and discretionary for a couple of months now with the view that long duration stocks had already been badly beaten-up last year, having priced in an ISM of 37.7 in October; this is the NDX but the consumer discretionary ETF (XLY) vs. ISM year-on-year looks very similar...

... and according to the latest from the BofA Fund Manager Survey, everyone is still underweight...

GMI Chart 4 – DXY

The dollar is also approaching interesting levels and will soon retest the H&S neckline, the 200 DMA and the higher boundary of the downward slopping channel.

106-107 is the key resistance zone to watch...

This is something we’re monitoring very closely at GMI, having closed our EUR/USD shorts for GMI clients back in October, which was a very non-consensus call at the time...

The DXY will also trigger a daily 9 on Monday...

GMI Chart 5 – Solana

Finally, we’ll leave you to mull over this chart on Solana, which appears to be forming a small bull flag following the 220% surge in January. We doubled our position in Solana in early January and still think the charts look constructive. Above 25 from here and it’s off to the races again!!!

To conclude, there is a lot to keep an eye on next week – including a whole host of new data releases and key technical support levels for SPX, as well as other important equity indexes...

There will be no weekly update from us next week as we are writing the March GMI Monthly, but we will share something special with you from one of our recent GMI Monthly publications.

We hope that you’re enjoying these weekly pieces from us. Good luck out there!

Raoul Pal – CEO, Founder - Global Macro Investor

Julien Bittel – Head of Macro Research - Global Macro Investor