Last week’s review of the macro market indicators which heading into the week saw the equity markets on the verge of a major reversal higher. Elsewhere looked for gold to continue higher in its uptrend along with crude oil. The US dollar index looked weak short-term in consolidation while US Treasuries were biased lower. The Shanghai Composite and Emerging Markets were biased to the upside in the short run.
Volatility looked to continue toward the normal range with a bias lower, adding a breeze to the backs of the equity markets. The equity index ETFs SPDR S&P 500 (NYSE:SPY), iShares Russell 2000 (NYSE:IWM) and PowerShares QQQ Trust Series 1 (NASDAQ:QQQ), looked better to the upside, with the SPY and IWM showing strength in their break of the range higher, while the QQQ lagged behind but also looked better to the upside.
The week played out with gold moving in a tight range but holding its ground while crude oil slowed as it came into resistance. The US dollar moved lower while treasuries crept up early only to fall back and end the week lower. The Shanghai Composite met resistance at a lower high and started a pullback while Emerging Markets took a brief pause in their rally before resuming it Friday.
Volatility bounced off of last Friday’s lows but then fell back near even on the week. The Equity Index ETFs started the week heading lower in bull flags, consolidating their gains before breaking to the upside to end the week high.
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