Last week’s review of the macro market indicators suggested, heading into the unofficial start of summer, that the equity markets looked positive and better in the longer time frame than the shorter one. Elsewhere, look for gold to continue to hold near 1200, while crude oil consolidates with an upward bias. The US dollar index was biased to the upside, but it was still too soon to declare a reversal higher, while US Treasuries were biased lower, but showing signs of consolidation. The Shanghai Composite was moving higher in renewed strength, and Emerging Markets were biased to the downside in the uptrend, debating whether it was a bull flag or a reversal. Volatility looked to remain subdued, keeping the bias higher for the equity index ETF’s SPY (ARCA:SPY), IWM (ARCA:IWM) and QQQ (NASDAQ:QQQ). Their charts agreed with that on the weekly time frame, but showed better strength on the SPY and QQQ on the daily timeframe than in the IWM.
The week played out with gold probing lower under 1200 but quickly finding support, while crude oil tested the consolidation zone, but held and bounced. The US dollar continued higher before a pause, while Treasuries broke the downtrend, moving higher. The Shanghai Composite made another new 7 year high before pulling back, while Emerging Markets took another turn lower. Volatility opened higher Tuesday, but then stayed in a tight range all week. The Equity Index ETF’s all fell from their recent highs to start the week, with the SPY then consolidating, the IWM reclaiming some ground along with the QQQ, which also printed a new 14 year high close along the way. What does this mean for the coming week? Lets look at some charts.
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.