We are the first to confess we have no idea which direction equities are headed next week. As you can see some of the stronger markets had a rough week verus a relatively strong performance in the U.S. indices.
Watch the key levels on the S&P500 closely this week as a clue for where equities are headed. Keep on your radar European sovereign spreads, which rallied off their lows into Friday’s close, and the Hang Seng and Shanghai composite — both, of which, broke through their 50-day moving averages last week — as leading indicators of risk aversion. Traders would do well to also moinitor how Dr. Copper trades.
After such a stellar run with the S&P500 up close to 30 percent since its October low, we’re trying to be patient and
looking hoping for a pullback in the S&P500 to the 50-day moving average at around 1250. Good luck next week!
(click here if charts are not observable)