Last week’s review of the macro market indicators suggested, heading into the January Options Expiration week that the equity markets looked at best to be consolidating. Elsewhere looked for gold to bounce higher in the possible bottoming while Crude Oil continued lower. The US Dollar Index looked ready to pause or pullback in its uptrend while US Treasuries were biased higher. The Shanghai Composite was also ready for a pause or short term pullback in the uptrend while Emerging Markets were consolidating and biased to the downside. Volatility looked to remain subdued but perhaps slightly drifting up, 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), but less so marginally. Their charts suggested some consolidation is in order and perhaps a short term pullback.
The week played out with Gold pushing higher all week while Crude Oil made another thrust lower before bouncing back and holding. The US dollar continued its run higher to end the week while Treasuries added another leg up to new all-time highs. The Shanghai Composite consolidated for a brief moment before making new highs while Emerging Markets hovered under resistance. Volatility bounced up to the recent highs but not over that level. The Equity Index ETF’s all continued lower, taking out the early January lows before a bounce Friday. What does this mean for the coming week? Lets look at some charts.
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