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’s price remained below key areas of technical support on Friday; therefore, one might consider those areas of support have now become resistance. Overall, price action in SPY looks weak.

BND’s price closed nicely above areas of technical support on the week, and BND price could be considered in an upward trend.

SENTIMENT:
Problems in the banking sector continued last week and are likely to continue in the coming week. Additional bank failures appear likely in the near term. Expect volatility in both equities and bonds as central banks act to address what seems to be a liquidity issue.

ECONOMY AND FUNDAMENTALS:
Economic indicators within the Market Notebook remain mixed but are skewing towards recession. Real economic activity will likely slow over the next few months. Jobless claims are to be watched as a key indicator of recession.

NEXT WEEK:
Be prepared for continued volatility during the coming week. The technical picture suggests embracing bond purchases and avoiding equity purchases unless necessary.

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.