Last week’s review of the macro market indicators suggested, heading into the last full week before the Holiday season and November Options Expiration, sees the equity markets continued to look better on the longer timeframe than on the daily. Elsewhere looked for Gold to continue the bounce in its downtrend while Crude Oil headed lower. The US Dollar Index looked to continue to move sideways with a chance of a pullback while US Treasuries were level in their pullback. The Shanghai Composite might consolidate in the uptrend while Emerging Markets muddled along sideways with a slight upward bias. Volatility looked to remain subdued 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). Their charts were not as firm in that regard though, with the IWM in consolidation mode short term and the SPY and QQQ stronger but also looked better in the longer timeframe.
The week played out with Gold pushing higher while Crude Oil probed new lows before bouncing Friday. The US Dollar continued sideways until a break higher Friday, while Treasuries had a similar week. The Shanghai Composite continued to consolidate while Emerging Markets held at the lows before a Friday bounce. Volatility held in a tight range before finishing at a new low and the low of the week. The Equity Index ETF’s continued to show no signs of falling, with the weakest, the IWM moving sideways in its range while the SPY and QQQ crept higher. The SPY finishing the week at new all-time highs. What does this mean for the coming week? Lets look at some charts.
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