Last week’s review of the macro market indicators suggested, heading into October Options Expiration that the picture for the equity markets was gloomy. Elsewhere looked for Gold to bounce in its downtrend while Crude Oil continued lower. The US Dollar Index was strong and biased higher along with US Treasuries. The Shanghai Composite also looked to head higher while Emerging Markets were biased to the downside. Volatility was on the cusp of a break out higher putting equities at risk. The charts of the Index ETF’s, S&P 500,iShares Russell 2000 Index (ARCA:IWM) and QQQ (NASDAQ:QQQ), showed that as well, with the IWM starting a downtrend while the SPY and QQQ were also biased lower in the short run, but looked stronger in the longer timeframe. The week could prove crucial for equities.
The week played out with Gold holding its gains while Crude Oil dropped hard before it rebounded late in the week. The US Dollar continued to digest its move higher while Treasuries spiked and pulled back to end the week. The Shanghai Composite moved up to test resistance but held a tight range while Emerging Markets consolidated at the lows. Volatility also spiked to multi-year highs send a shock wave through the markets. The Equity Index ETF’s continued their slide early in the week but the IWM reversed and the SPY and QQQ followed. Will it hold up and what does this mean for the coming week? Lets look at some charts.
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.