Market Notebook

Equity prices, as Measured by ticker SPY, closed lower last week while bonds, as measured by ticker BND, closed higher.

As a result of last week‘s price action, the S&P 500 can be considered in a bear market.

The Conference Board’s Leading Economic Index declined for a second straight month in May. Consecutive declines can be a harbinger of recession. For this reason, market participants will likely be anxiously watching the June release.

It will likely take stabilization or improvement of inflation data to put a bottom under both bonds equities and bonds. Once market participants get the slightest idea that inflation may be moderating, they will likely pile back into the market with force. Be on the lookout for signs of moderation.

The technical picture for both equities and bonds is negative. Both can be considered in a downward trend. As such, it is likely prudent to avoid both equity and bond purchases during the coming week unless necessary.

Recent declines in both equities and bonds have caused pricing to improve for those looking to enter new positions. Make your list and check it twice. Wait for the technicals to tell you it’s nice.

Happy Father’s Day to all the fathers out there and all the best in the week ahead.

Disclaimer: Nothing in this discussion should be considered investment advice. The content of this discussion is strictly my personal opinion and subject to change at a moment’s notice. Investment advice can only be provided to you by your investment professional and not by a general market discussion such as this one. If you wish to speak with an investment advisor, contact us. We can probably help.