Week In Review: Gold Consolidates With Downward Bias
Dragonfly Capital | Jul 05, 2015 02:40AM ET
Last week’s review of the macro market indicators suggested, heading into the holiday shortened week that the equity markets looked better on the longer timeframe with some vulnerability on the short timeframe. Elsewhere looked for gold to continue consolidation with a downward bias while crude oil consolidated with an upward bias. The US Dollar Index continued to move sideways in broad consolidation after the uptrend while US Treasuries were biased lower. The Shanghai Composite was finally be in the long awaited correction while Emerging Markets were biased to the downside. Volatility looked to remain subdued keeping the bias higher for the equity index ETF’s ARCA:SPY, ARCA:IWM and NASDAQ:QQQ. Their charts continued to show the SPY and QQQ moving similarly on the shorter timeframe while the IWM was stronger until late in the week. The rotation seemed to be starting out of the small caps again.
The week played out with gold probing higher before falling back to the June lows while crude oil started lower in its consolidation late in the week. The US dollar continued the drift higher while Treasuries consolidated at the lows. The Shanghai Composite continued lower into bear market territory while Emerging Markets started lower but found support and bounced. Volatility popped and held the week over the gap. The Equity Index ETF’s all gapped lower to started the week but then rebounded before giving back some of the gains Thursday. The IWM performed the worst while the SPY and QQQ held some of the mid week gains. Perhaps another round of rotation.
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