Third Friday in a row stock markets lose momentum – what to expect during next week

Calmly, US indexes remain near record highs.

However, for the third consecutive Friday, investors avoid the risk. Sentiment says anything can happen over the weekend, and if something really does happen – as signs of a threatening release of the virus outside China – then we can see a gap at Sunday night / Monday morning indexes.

Risk justified.

The problem is that the results are mixed. Two Mondays ago, there was a gap at the launch of US futures markets, while that Monday was reversed. Widespread fears about the coronavirus have also receded, leaving market players with a difficult decision, especially as sales are lower today than in the last day of the past two weeks.

Do we buy discounts?

I also have to keep in mind that the indices are very close to their historical peaks.

It is important to keep track of how the session will end and whether buyers will intervene in the last 5 minutes.

The price action signal in gold also remains mixed. On the one hand, we have technical indicators for short positions, but sellers refuse to exit the market and hold the precious metal on stand by, insured in case of uncertainty.

Oil also remains surprisingly low on the chart despite expectations of an increase from strong support levels. Buyers and sellers are fighting for supremacy, with expectations for the new week to determine where the move will continue.

On the economic news front, the new week does not offer much surprise. What catches the eye of traders the most is RBNZ’s decision on the base rate in New Zealand. It is expected that there will be no change in interest rates, but it will still be interesting what the direction for the future of monetary policy in the country will be.

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