Last week’s review of the macro market indicators suggested, heading into June Options Expiration week, that the Equity markets looked weak in general short term. Elsewhere looked for gold to continue lower while crude oil consolidated in the uptrend. The US dollar index was also in broad consolidation, but with a downward bias, while US Treasuries were trending lower, but might be ready for a bounce. The Shanghai Composite remained strong and rising, while Emerging Markets were biased to the upside short term in the downtrend. Volatility looked to remain subdued, keeping the bias higher for the equity index ETF’s ARCA:SPY, ARCA:IWM and NASDAQ:QQQ. Their charts suggested that it would take some work for the SPY and QQQ, which looked weak in the short term and flat intermediate, while the IWM trended higher.
The week played out with gold steady before a push higher to end the week up, while crude oil continued to be range bound. The US dollar continued the move lower, while Treasuries held just above last week’s level. The Shanghai Composite is showing a strong pullback, while Emerging Markets again found support and bounced. Volatility started the week higher, but fell back quickly ending close to unchanged. The Equity Index ETF’s ignored this mix and just moved higher, with the SPY and QQQ seeing some selling Friday, while the IWM printed a new all-time high and held.
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