Risk-on holds despite a quiet market

Frank Walbaum

Risk-on holds despite a quiet market

Markets remain relatively calm without a strong directional move, but equities are starting to turn higher. The S&P 500 and Nasdaq are showing renewed strength, while the Dow Jones is lagging. This suggests that risk sentiment could remain positive, with investors continuing to favour growth and technology stocks over traditional blue chips.
The weaker US Dollar is helping to support the risk-on environment and is giving equities some additional breathing room. Gold and Silver, however, are struggling at important resistance levels and have started to turn lower. Crypto remains the weak spot, with Bitcoin and most altcoins continuing to drift lower despite the improving tone in stocks.

Market talk

The current setup remains constructive for risk assets, but momentum is still limited. If the S&P 500 and Nasdaq can extend their gains while the Dollar remains weak, further upside could follow. The divergence between equities and crypto is worth watching, as persistent crypto weakness suggests that risk appetite is not yet broad-based. For metals, a failure to break resistance could lead to another short-term correction.

Tendencies in the markets

Equities positive, USD weak, BTC weak, ETH weak, oil positive, metals at resistance, JPY weak.

Author

Frank Walbaum

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