Market Notebook

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

TECHNICAL ANALYSIS:
SPY could be considered to be in a downward trend as the price failed to close above the 20-day exponential moving average. Possible support may exist in the vicinity of the September 30th lows.

BND looks similar to SPY and appears to be in an established downward trend. Possible support may exist in the vicinity of the September 27th lows.

SENTIMENT:
A “good” jobs report was met with negative market participant sentiment. The jobs data suggests the Federal Reserve has room to continue the tightening cycle.

ECONOMY AND FUNDAMENTALS:
Regarding the real economy, the status quo continues. Significant inflationary pressures remain in the real economy, and the Federal Reserve continues to act to reign in those pressures.

NEXT WEEK:
Given the technical analysis picture, it seems prudent to avoid equity or bond purchases until the downward price momentum slows.

Price action in the vicinity of the late September lows in equities and bonds should be closely monitored.

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.