Last week’s review of the macro market indicators suggested quiet, heading into the week with news and earnings dry up. And Equities could use some quiet time to steady themselves. Elsewhere looked for a possible bounce out of gold in its downtrend, while crude oil continued lower. The US dollar index looked to continue consolidation with an upward bias, while US Treasuries continued higher. The Shanghai Composite remained in broad consolidation in the pullback, while Emerging Markets looked like they may break a 6 year range to the downside. Volatility looked to remain subdued, keeping the bias higher for the equity index ETF’s ARCA:SPY, ARCA:IWM and NASDAQ:QQQ, despite the moves lower the prior week. Their charts showed further short term weakness possible, but the Hammer candles could confirm a short term bottom. On the longer timeframe, the IWM remained weakest, with the SPY consolidating and the QQQ looking strong.
The week played out with gold starting higher, moving back over 1100, while crude oil continued to the downside. The US dollar moved slightly lower in consolidation, while Treasuries continued the trend higher. The Shanghai Composite pushed slightly higher, while Emerging Markets broke a six year channel to the downside. Volatility held a tight range, little changed on the week. The Equity Index ETF’s started the week well, but gave up the gains immediately, ending the week little changed from last Friday.
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