Gold Price Pushing Higher As Oil Rebounds From Resistance
London (Oct 18) Last week’s review of the macro market indicators suggested heading into October Options Expiration week that the equity markets were looking stronger, but had not sent the all clear signal yet. Elsewhere looked for gold to continue its short term uptrend, while crude oil did the same but might encounter resistance. The US dollar index had a short term bias lower for the week in the broad consolidation, while US Treasuries were biased lower short term as well. The Shanghai Composite looked to continue in consolidation, while Emerging Markets were biased to the upside. Volatility looked to return to more normal levels relieving the downward bias on the equity index ETFs N:SPY, N:IWM and O:QQQ. Their charts all showed strength continuing into the week, but with the SPY the strongest followed by the QQQ and then the IWM on the longer term look.
The week played out with gold pushing higher while crude oil found resistance but rebounded late in the week. The US dollar moved lower while Treasuries found support and bounced. The Shanghai Composite started higher out of consolidation, while Emerging Markets dipped and bounced finishing almost unchanged. Volatility settled and ended with a dip to 2 month lows. The Equity Index ETFs started the week looking like they would roll over again only to find support and push back higher, with all but the IWM ending the week positive. What does this mean for the coming week?