Last week’s review of the macro market indicators suggested, heading into Quarter end and a holiday shortened week the Equity markets looked short term vulnerable in their long term uptrends. Elsewhere looked for Gold to try higher in its short term uptrend but with trepidation while Crude Oil consolidated back in a channel. The US Dollar Index might continue to consolidate in its uptrend with a bias higher while US Treasuries were biased lower as they consolidated. The Shanghai Composite looked better to the upside in its consolidation and Emerging Markets were biased to the downside in their broad consolidation. Volatility looked to remain subdued keeping the bias higher for the equity index ETF’s ARCA:SPY, ARCA:IWM and NASDAQ:QQQ. Their charts showed a mixed bag with consolidation in the uptrends on the longer timescale, with the IWM the strongest, while on the shorter timeframe the IWM and QQQ might reverse higher with the SPY still looking vulnerable.
The week played out with Gold starting lower before rebounding to end the week near flat while Crude Oil pulled back slightly but remained in its consolidation. The US dollar inched back higher while Treasuries held in a narrow range but slightly higher. The Shanghai Composite pushed to new highs while Emerging Markets finally found a bid and started higher. Volatility bounced around a bit but stayed mired in and among the SMA’s. The Equity Index ETF’s started the week higher but as it went on the SPY and QQQ gave back most of the gains, while the IWM held in place after the initial move. What does this mean for the coming week? Lets look at some charts.
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