Last week’s review of the macro market indicators suggested that heading into another holiday shortened week, and one that should prove to be very light on everything the equity markets have, saw equities rebounding but still looking vulnerable, especially the N:SPY. Elsewhere looked for Gold to consolidate in its downtrend while Crude Oil continued a bounce in its downtrend. The US Dollar Index looked to be weaker short term in consolidation while US Treasuries consolidated.
The Shanghai Composite looked to continue consolidation with an upward bias while Emerging Markets bounced in their consolidation of the downward move. Volatility looked to remain subdued keeping the bias higher for the equity index ETF’s SPY, N:IWM and O:QQQ. Their charts agreed with that in the short term with the IWM looking the strongest. In the intermediate term the SPY looked weakest while the IWM and QQQ continued the sideways churn.
The week played out with Gold probing lower in its consolidation range while the bounce in Crude Oil stalled and it reversed lower. The US Dollar drifted lower while Treasuries met resistance and pulled back. The Shanghai Composite moved sideways in consolidation while Emerging Markets turned back lower in consolidation.
Volatility bounced but stayed in the normal range. The Equity Index ETF’s started the week well making a short term higher high, but gave back most or all of the gains as the week and year closed out. What does this mean for the coming week? Lets look at some charts.
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