Last week’s review of the macro market indicators suggested, heading into Spring, College Basketball’s March Madness, the April options cycle and the last full week of March, that the equity markets were looking strong. Elsewhere looked for Gold to bounce higher in its downtrend while Crude Oil consolidated in its downtrend. The US Dollar Index was consolidating the move up and US Treasuries were looking strong. The Shanghai Composite was also strong and looked to move higher while Emerging Markets were biased to the upside in the short run but not looking really strong. Volatility looked to remain subdued and drifting lower 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 also looked good for more upside with the IWM the strongest even at all-time highs, and the SPY and QQQ showed signs of a possible short term pause before another move up.
The week played out with Gold continuing higher to end the week up while Crude Oil started started higher and continued until giving back a lot late in the week. The US Dollar found support in its pullback while Treasuries ended their run higher, retreating on the week. The Shanghai Composite consolidated sideways at highs while iShares MSCI Emerging Markets (ARCA:EEM) continue to flounder like a torn flag in the wind. Volatility ha a small spike but quickly fell back. The MSCI all-country World Equity Index ETF’s started the week leaking lower before a big mid week drop and then consolidation, ending the week lower. All holding near the early March lows. What does this mean for the coming week? Lets look at some charts.
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