Last week’s review of the macro market indicators suggested, heading into the last week of April, that the equity indexes were looking strong on the weekly timeframes and a bit mixed on the short term view. Elsewhere looked for Gold to continue lower while Crude Oil rose towards a major character change area. The US Dollar Index looked to continue to consolidate the large move higher while US Treasuries were biased lower in the short term in their uptrend. The Shanghai Composite and Emerging Markets were biased to the upside with risk of the Chinese market becoming overheated at any point. Volatility looked to remain subdued keeping the bias higher for the equity index ETF’s ARCA:SPY, ARCA:IWM and NASDAQ:QQQ. Their charts all looked higher on the weekly timeframe but on the daily timeframe the QQQ was a bit stretched while the IWM and SPY tested resistance but with some strength.
The week played out with Gold pushing higher before falling back to end the week down while Crude Oil moved above that change of character area and settled higher. The US dollar moved lower but may have found support Friday while Treasuries continued lower. The Shanghai Composite broke another barrier and the consolidated sideways while Emerging Markets pulled back to support. Volatility poked its head higher briefly before pulling back. The Equity Index ETF’s all pulled back hard with the IWM taking the brunt of the downturn, but all bounced a bit Friday. Perhaps a bounce in place? What does this mean for the coming week? Lets look at some charts.
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