Macro Week in Review/Preview August 10, 2012

• Posted by Greg Harmon
• on August 10th, 2012

Last week’s review of the macro market indicators saw heading into the dog days of August that the markets were looking better. Gold and Crude Oil were poised to consolidate with a bias for an upside move on a break. The US Dollar Index and Treasuries seemed content to move continue to pullback in their uptrends. The Shanghai Composite really looked ugly but might have a reprieve for a few days and Emerging Markets were poised to move higher. Volatility looked to remain low and possibly make new lows setting the stage for the Equity Index ETF’s SPY, IWM and QQQ, to continue to run higher. The inter-market view with the lower bias for Treasuries and the US Dollar, and higher bias for Crude Oil also supported more upside for Equities.

The week played out with Gold and Crude Oil moving to the upside stronger in Gold. The US Dollar and Treasuries seem to have found a bottom and consolidated. The Shanghai Composite took that reprieve and moved higher joining Emerging Markets to the upside. Volatility consolidated before making a new 5 month low. The Equity Index ETF’s all rose and then consolidated with the favorable backdrop. What does this mean for the coming week? Let’s look at some charts.

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