Macro Week In Review/Preview

Last week’s review of the macro market indicators saw heading into the height of summer and the Olympic fortnight, the markets were looking up, although not all equally.

Gold and Crude Oil were looking to continue to move higher with a chance that Gold consolidates. The US Dollar Index and Treasuries were poised to continue their pullbacks within the uptrend. The Shanghai Composite was heading lower while Emerging Markets might consolidate their recent move higher before continuing.

Volatility looked to remain subdued allowing for the Equity ETF’s SPY, IWM and QQQ to continue higher. The bias in the US Dollar Index and Treasuries supported more upside for equities as well. Looking at their charts showed that the SPY was the strongest and looked to continue higher while the QQQ was next followed by the IWM, both of which needed to break above consolidation areas to look more healthy to the upside.

The week played out with Gold falling and Crude Oil dipping slightly before both recovered Friday. The US Dollar and Treasuries moved higher before giving up gains to end the week lower. The Shanghai Composite and Emerging Markets were true to the charts with the Shanghai Composite continuing lower while Emerging Markets consolidated before rising to end the week. Volatility consolidated before heading lower to end the week.

The Equity Index ETF’s also behaved as expected relatively, with the SPY and QQQ running sideways before ending higher and the IWM lagging, moving lower before a rebound. What does this mean for the coming week? Lets look at some charts.

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