Market Notebook
Discussion –
Equities retreated last week while bonds remained within a consolidation pattern. The pullback in the S&P 500 took the index below its 20-day exponential moving average. In the past several months, moves below the 20-day EMA have been buying opportunities. While this may indeed be the case again, caution is advised as the end of the quarter nears. Rebalancing, along with other factors, including an increase in the overall supply of equities, could keep the S&P under pressure coming into the end of the month. It may be wise to seek technical confirmation before adding to equity positions in September.
All the best in the week ahead.