Equity Markets Continue Showing Solid Strength

Published 03/20/2016, 02:16 AM
Updated 05/14/2017, 06:45 AM

Last week’s review of the macro market indicators heading into March Options Expiration saw equity markets looking strong and ready for more upside. Elsewhere looked for gold to consolidate in its uptrend while crude oil continued higher. The US Dollar Index looked better to the downside short-term in consolidation, while US Treasuries were biased lower.

The Shanghai Composite was consolidating in a broad range while emerging markets were biased to the upside. Volatility looked to remain subdued and falling back to normal levels, putting a breeze at the back of the equity index ETFs SPDR S&P 500 (NYSE:SPY), iShares Russell 2000 (NYSE:IWM) and PowerShares QQQ Trust Series 1 (NASDAQ:QQQ). Their charts all looked good for more upside as well on both time frames. Use this information as you prepare for the coming week and trad’em well.

The week played out with gold drifting lower before rebounding to end the week higher, while crude oil continued the run higher. The US dollar took a beating, while treasuries rebounded in their channel lower. The Shanghai Composite pushed higher, while emerging markets started the week retrenching before launching higher.

Volatility continued lower, making a new 4 and a half month low. The equity index ETFs continued to show strength, with the SPY posting the strongest gains, ending back over its 200-day moving average, and the QQQ moving higher while the IWM consolidated at its recent highs.

Disclaimer: 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.

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