Last week’s review of the macro market indicators suggested, heading into the Memorial Day Weekend that the equity markets looked healthy, but remained short of break outs. Elsewhere looked for gold to continue to consolidate with a short term upward bias while crude oil consolidated in its uptrend. The US dollar looked to continue to pullback while US Treasuries bounced in their downtrend. The Shanghai Composite was in broad consolidation mode while Emerging Markets consolidated with an upward bias in their uptrend. Volatility looked to remain subdued with a bias lower keeping the bias higher for the equity index ETF’s SPDR S&P 500 (ARCA:SPY), iShares Russell 2000 (ARCA:IWM) and PowerShares QQQ Trust Series 1 (NASDAQ:QQQ). Their charts were all still more positive on the longer timeframe, but the SPY and QQQ looked stronger than the IWM. This might yield an opportunity in the IWM to catch up.
The week played out with gold falling back toward 1200 while crude oil continued to hold in the consolidation range from 58.50 to 62. The US dollar found support and bounced while Treasuries tested lower, finding support as well before a small bounce. The Shanghai Composite moved higher to a new 7 year high while Emerging Markets consolidated sideways in a tight range. Volatility moved lower, making a new low for the year, before rebounding slightly. The Equity Index ETF’s were all positive but mixed, with the SPY setting a new all-time high, and the IWM the QQQ close to their recent all-time and 15 year highs. What does this mean for the coming week? Lets look at some charts.
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