Last week’s review of the macro market indicators heading into the first full week of April saw the equity indexes looking strong and ready to make another leg higher. Elsewhere looked for gold to continue its pullback along with crude oil. The US dollar also looked to continue lower, possibly testing key 12-month support, while US Treasuries were breaking to the upside and looked to continue.
The Shanghai Composite looked poised to move higher in its downtrend as emerging markets continued to trend higher. Volatility looked to remain low and biased lower, keeping the bias higher for the equity index ETFs SPDR S&P 500 (NYSE:SPY), iShares Russell 2000 (NYSE:IWM) and PowerShares QQQ Trust Series 1 (NASDAQ:QQQ), despite the moves over the past week. Their charts also looked strong on both the daily and weekly time frames, with only slight warnings coming from slowing momentum indications.
The week played out with gold probing lower and finding support for a bounce, while crude oil also started lower and rebounded late in the week. The US dollar moved in a narrow range, while treasuries pushed higher. The Shanghai Composite gained some separation from 3000 and then gave it back, while emerging markets moved lower, testing their trend. Volatility drifted higher, but not materially. The equity index ETFs all started the week flat, but fell on Tuesday and held there for the remainder of the week. No real damage to equities but a stall or stop of the trend higher.
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