Market Notebook

PRICE ACTION:
Equity prices, as measured by ticker SPY, and bond prices, as measured by ticker BND closed higher on the week, with SPY price breaking higher out of consolidation and BND price reversing sharply higher.

TECHNICAL ANALYSIS:
SPY appears to have broken higher out of an area of price consolidation to close above the 20-day exponential moving average.

BND price reversed sharply higher on the week and closed above the 20-day exponential moving average.

The above is likely short-term bullish for both equities and bonds.

SENTIMENT:
Market participants appeared optimistic during the last week. Data suggested that inflationary pressures are slowing while the employment situation remains strong.

ECONOMY AND FUNDAMENTALS:
Economic indicators within the Market Notebook remain mixed. Real economic activity will likely slow over the next few months as the Federal Reserve continues to act to contain inflationary pressures.

NEXT WEEK:
Momentum has shifted from negative to neutral or positive regarding equities and bonds. Purchases for specific opportunities may be warranted. 

All the best during 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.