Last week’s review of the macro market indicators suggested, as the markets head out of June Options Expiration and officially into summer, that equities continued to churn with an upward bias. Elsewhere, looked for gold to be biased to the upside short term in its consolidation, while crude oil consolidated with an upward bias. The US dollar index looked headed lower in its broad consolidation of the long move up, while US Treasuries might consolidate in their downtrend. The Shanghai Composite seemed to be beginning its long awaited correction, or just doing its 4th 10% plus move lower before another launch higher, while Emerging Markets were biased to the downside, but might consolidate after their move lower. Volatility looked to remain subdued, keeping the bias higher for the equity index ETFs ARCA:SPY, ARCA:IWM and NASDAQ:QQQ. The IWM continued to look the strongest on the short time frame as it sat at all-time highs, with the QQQ strong as well on the weekly timeframe and the SPY stuck in a funk consolidating.
The week played out with gold moving lower right out of the starting blocks and continued all week, while crude oil continued to hold in the consolidation range. The US dollar moved higher, while Treasuries started higher, but hit overhead resistance, and pulled back to new lows. The Shanghai Composite took a hard turn lower, while Emerging Markets tried higher but found resistance quickly. Volatility moved lower before rebounding slightly, but holding in a tight range. The Equity Index ETFs started the week moving higher, with the IWM making a new all-time high, the SPY coming close, and the QQQ reaching the previous resistance, before all moved back lower through out the week.
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