Last week’s review of the macro market indicators suggested, heading into December that the markets were biased higher but cautiously so. Gold looked headed lower in its long-term channel while Crude Oil headed higher. The US Dollar Index seemed content to move lower while US Treasurys were biased lower but might continue to consolidate.
The Shanghai Composite was marching lower while Emerging Markets stagnated in their consolidation zone. Volatility looked to remain low keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts were starting to show signs of being tired though, so caution was warranted on the long side in the near term.
The week played out with Gold moving lower while Crude Oil continued in the tight range. The US dollar ended its move lower bouncing to end the week while Treasurys consolidated. The Shanghai Composite found a short-term bottom and rallied while Emerging Markets gave up their range moving higher. Volatility continued to act subdued. The Equity Index ETF’s ran sideways with the SPY and IWM flat and the QQQ drifting slightly lower.
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