A pivotal week needs follow-through to confirm the bull case

Last week may have been a pivotal week for most of the financial markets. Here are some highlights:

• Hedge Funds reduced long oil positions by the largest amount in over two years. WTI net long dropped the most since July 2021. Bearish sentiment grows amid a macro backdrop pointing to lower growth.

• Stock Short Sellers suffered their most significant weekly loss in nearly two years. U.S. financial markets posted their most robust "everything rally" in a year.

• Technicals: Beware bears - a potential inverse head and shoulders formation may be shaping. It is still early, but worth watching over the following weeks.

• U.S. Treasuries declined 17% last year, the worst return in over 200 years. They are on course for their 3rd straight year of losses. This has never happened before in U.S. history. But after this week's gains, treasuries have broken their downtrend and have a fighting chance to avoid this outcome.

• Bank stocks had their best week since June 2020. The R2K also broke the downward trend to the upside.

The Economic Week Ahead: November 6 - 10

It is a light week for U.S. economic indicators.

More importantly, the FOMC's blackout period is over, so that many remarks will come from the Federal Open Mouth Committee members.

Jerome Powell will be speaking alongside other global central bank heads on Thursday.

To be released on Monday, Q4's Senior Loan Officer Opinion Survey is the most important economic indicator and will probably show more tightening of credit conditions.