Last week’s review of the macro market indicators suggested, heading into the dog days of August, that the Equity markets had weathered another storm but were not showing strength to push higher yet. Elsewhere looked for gold to consolidate or continue lower, while crude oil moved to the downside. The US dollar index looked to move sideways with an upward bias, while US Treasuries were biased to continue higher. The Shanghai Composite and Emerging Markets both were biased to the downside, but trying to consolidate. Volatility looked to remain subdued, keeping the bias higher for the equity index ETFs ARCA:SPY, ARCA:IWM and NASDAQ:QQQ. Their charts suggested that there was potential for some weakness in the current move short term though. On the longer timeframe, the QQQ looked strong and perhaps ready for new all time highs, while the SPY was in consolidation and the IWM was in a retrenching consolidation.
The week played out with gold holding in a tight range, while crude oil took a turn lower. The US dollar inched higher, while Treasuries vacillated but ended to the upside. The Shanghai Composite moved sideways in a tight range, while Emerging Markets inched lower. Volatility started lower and made a new 52 week low before rebounding slightly. The Equity Index ETFs started the week in a tight range, but by Wednesday all had started lower and continued through Friday.
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