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 action was positive during the last week; however, prices appear to be remaining under resistance levels, meaning the price action is painting a weak picture.

BND’s price action continues to support the idea that BND is established in an upward trend.

SENTIMENT:
The banking sector will likely continue to spawn volatility for a while yet.

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 as the Federal Reserve works to mute inflationary pressures.

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 except for necessary portfolio changes or specific opportunities.

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.