Last week’s review of the macro market indicators suggested heading into the first full week of October that the indexes had again dodged a bullet and ended the week on strength. Elsewhere looked for gold to continue to consolidate in its downtrend, while crude oil consolidated in its downtrend. The US dollar index looked to mark time as it consolidated its move higher, while US Treasuries were biased higher in the short term. The Shanghai Composite looked to continue to consolidate in its trend lower, while Emerging Markets were biased to the upside in broad consolidation after their move lower. Volatility looked to remain elevated, but moving back toward normal levels easing the headwind for the equity index ETFs NYSE:SPY, NYSE:IWM and NASDAQ:QQQ. The indexes themselves all looked good in the short term while they consolidated in the intermediate term.
The week played out with gold probing the upper end of the consolidation and ending the week peeking over the top, while crude oil broke its consolidation to the upside. The US dollar drifted lower, while Treasuries reversed course and started lower. The Shanghai Composite gapped higher after a week off and held while Emerging Markets continued their move higher. Volatility continued lower, edging back to normal ranges. The Equity Index ETFs all continued higher off of the last Friday charge, with the SPY and the IWM leading the charge and the QQQ better, but lagging them.
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