Market Notebook

PRICE ACTION:
Equity prices, as measured by ticker SPY, and bond prices, as measured by ticker BND, closed higher on the week.

TECHNICAL ANALYSIS:
SPY closed above weekly resistance and appears established in an upward trend.

BND moved slightly higher again last week and appears established in an upward trend. The slowing of gains could transition BND from an upward trend to an area of consolidation.

SENTIMENT:
Optimism was on full display last week as equity prices moved sharply higher.

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:
Corporate earnings, along with a heavy economic data release week, could cause increased volatility.

It seems prudent to reiterate that the October lows in BND could be the cycle lows, and it may be prudent to adjust portfolio bond holdings.

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.