Market Notebook

PRICE ACTION:
Equity prices, as measured by the ticker SPY, traded lower, while bond prices, as measured by the ticker BND, closed higher during the last week.

SPY    -0.26%
BND    +0.37%

TECHNICAL ANALYSIS:
SPY price appears to have established a consolidation pattern after experiencing short-term weakness within a medium-term upward trend. Such consolidation bears watching as a break higher out of consolidation could signal the resumption of the upward trend, while a break lower could signal more short-term weakness to come.

BND price appears to be consolidating, with price near the high end of the recent range.

SENTIMENT:
Market sentiment could be at a short-term inflection point, as the SPY price consolidated last week. In the “glass half full” scenario, investors are done expressing their worries about recent policy changes and will swing back towards optimism.

ECONOMY AND FUNDAMENTALS:
Economic fundamentals remain positive. Consensus suggests that recent trade actions by the U.S. government are expected to have a short-term negative impact on the real economy. If this impact exists, it is not yet showing up in the data points followed in the market notebook.

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.