Stocks lost ground against bonds and gold

Clint Sorenson, CFA, CMT WealthShield

Highlights:

Stocks lost ground against bonds and gold.
S&P 500 rejected the important resistance range of 2800-2820.
The VIX bounced over 18% as volatility came back into the equities markets.
Small caps were the worst performers from a factor perspective.
Low volatility was the best performing factor.
Bonds, Gold, and the US dollar had strong weeks.
Growth continues to slow in the US as the ECRI Weekly Leading index is down -3.7% year over year.
Housing is starting to show some positive signs of life.
Defensive positioning is still warranted.

Download The Full Weekly Market Commentary

Author

Clint Sorenson, CFA, CMT

WealthShield

EUR/USD faces next resistance near 1.1930

EUR/USD continues to build on its recovery in the latter part of Wednesday’s session, with upside momentum accelerating as the pair retargets the key 1.1900 barrier amid a further loss of traction in the US Dollar. Attention now shifts squarely to the US data docket, with labour market figures and the always influential CPI releases due on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.