Last week’s review of the macro market indicators suggested, heading into the new week that the equity markets looked vulnerable. Elsewhere looked for Gold to continue lower while Crude Oil churned in a consolidation zone. The US Dollar Index looked to continue higher while US Treasuries continued lower. The Shanghai Composite looked to continue its broad consolidation with a short term downside bias and Emerging Markets were biased to the downside. Volatility looked to remain low 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). Their charts looked better to the downside though with the SPY the weakest and the IWM and QQQ a bit stronger on the longer timeframe.
The week played out with Gold continuing lower but at a slower pace while Crude Oil finally broke he consolidation to the downside. The US dollar showed continued strength as it moved higher while Treasuries found found support and bounced. The Shanghai Composite continued the drift up in consolidation ending near resistance while Emerging Markets moved lower. Volatility continued the rebound but stayed short of a breakout. The Equity Index ETF’s continued their moves lower but then diverged mid week with the QQQ continuing lower while the IWM bounced, while the SPY found support and settled. What does this mean for the coming week? Lets look at some charts.
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