Key points discussed in this week’s Roadmap:
- Equity markets - We view technical analysis as the rumble strips for financial markets, alerting investors to markets changing lanes. May continues to live up to its reputation as a volatile month as the S&P chops across its 7-month uptrend channel. Key support remains near the low end of the channel, at 3983-4000 first support.
- Interest rates – Despite inflation worries, US 10-year yields remain range bound with key rumble strips at 1.53%-1.70%, followed by 1.77% on the upside.
- Gold - What is gold indicating about inflation? 1965 and 2075 are key upside technical levels signaling mounting inflation concerns, while a move below 1670 would suggest gold is following the pattern that developed in 2011-2012.
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Connor Ryan
905-895-4102
connor.ryan@rbc.com