Investors had a rock and roll week, as the stock market sold off and then recovered, as I pointed out in the latest askSlim Market Week show. In all, the S&P 500 (SPX) rose 18 points on the week to 2970, an increase of 0.6%.

The market was down on Monday and Tuesday on the news that the Trump administration had blacklisted 28 Chinese firms for human rights abuses. However, it rebounded on Thursday and Friday as the US and China showed progress on a less ambitious “phase one” trade deal.

S&P 500 (SPX) Daily Chart 

Our approach to technical analysis uses market cycles to project price action. Our analysis is for the SPX to begin to roll over, within the context of its current minor cycle. While last week’s rally is noteworthy, the SPX was unable to convincingly break through short term resistance.

This lack of conviction suggests our “period of risk” towards the end of this month is still in play, as shown on the chart above.

30-Year Bond Futures Daily Chart 

The 30 year bonds were lower last week by over 2%, which suggests they are now in the declining phase for their current intermediate term cycle. Our call is for a choppy week that likely ends lower, with increasing risk into the end of the month.

For a more detailed analysis of both of these charts, check out the latest episode of the askSlim Market Week show.