Last week’s review of the macro market indicators suggested, heading into the week that equities broadly looked better higher but signs of rotation were showing up. Elsewhere looked for Gold to continue the short term channel higher in the downtrend while Crude Oil might be finding a bottom at last. The US Dollar Index continued to be strong as US Treasuries were biased lower in the uptrend. The Shanghai Composite looked to continue its uptrend, but perhaps with a short term pause while Emerging Markets were consolidating in a bear flag and biased to the downside. Volatility looked to remain subdued keeping the bias higher for the equity index ETF’s SPDR S&P 500 (ARCA:SPY), iShares Russell 2000 Index (ARCA:IWM) and PowerShares QQQ (NASDAQ:QQQ). The SPY looked good on the longer timeframe with the IWM starting to move out of a tight range higher. The QQQ looked a bit tired in the short run and money might rotate out of it to the IWM.
Well that did not work out so well for equities. The week played out with Gold continuing higher while there was no bottom in Crude Oil as it continued lower. The US Dollar pulled back to support while Treasuries moved back near the October high. The Shanghai Composite finally spent some time consolidating while Emerging Markets broke the bear flag to the downside. Volatility crept up closing near critical levels. The Equity Index ETF’s halted started the week to the downside and just kept slipping, with the SPY ending at the 50 day SMA and, the QQQ at the lower Bollinger Band®, and the IWM the strongest but still at the low of the week. What does this mean for the coming week?
Disclosure: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.