Macro Week in Review/Preview September 7, 2012

• Posted by Greg Harmon
• on September 7th, 2012

Last week’s review of the macro market indicators saw as September began, Gold and Crude Oil looking to move higher with a chance that Crude consolidates. The US Dollar Index looked to continue lower while US Treasuries were moving up. The Shanghai Composite and Emerging Markets looked to continue their downside moves with the chance that Emerging Markets find support nearby. Volatility looked to remain subdued but drifting higher keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. The SPY looked the most vulnerable of the three for a pullback and all three could easily continue sideways. There was also a caution to watch Treasuries, as their break higher would typically signal a pullback in Equities.

The week played out with Gold ripping higher while Crude Oil took the consolidation option. The US Dollar did continue lower while Treasuries started higher only to give it all back and then some. The Shanghai Composite consolidated at multi-year lows before bouncing Friday while Emerging Markets found that bottom at support and rose. Volatility popped up early but quickly fell through the rest of the week. The Equity Index ETF’s started steady but then jumped after the Draghi news and held after the Non-Farm Payrolls report, with the SPY and QQQ ending near new multi-year highs and the IWM closing in. What does this mean for the coming week? Lets look at some charts.

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