I postponed this weeks update for a couple of days to see what the market thought of the first debate between Trump and Clinton.
The S&P500 index was up .62% today which is a decent one day move to the upside. This tells me that the debate did not signal any surprises one way or the other. It is likely the market will continue to trade in the range it’s been in since early July between now and the election.
S&P 500 Index ETF (SPY) daily
This doesn’t give us much opportunity to trade direction for the next five weeks unless we get a breakout. Bonds have been trading in lock step with equities since early July albeit with more volatility.
20+ Year Treasury Bond Fund (TLT) weekly
The long term trend remains up and the charts don’t indicate any change on the horizon. Interest rates should continue to go lower, regardless of the Fed.
Energy made a bottom in early 2016 and has been trending higher since.
Energy Sector ETF (XLE) weekly
XLE, the energy sector ETF ran into resistance (orange horizontal line) in mid September and has traded lower since. As long as price remains above support (upwards sloping green line) price will trend higher.
Gold has been trending lower for five years except for the bounce from January to July of this year.
SPDR Gold Trust (GLD) weekly
Once resistance was hit in July GLD began another move down; see red arrow. Price action indicates this downward action will continue.
Tech continues to rip higher.
Technology Sector ETF (XLK) weekly
Powershares Tech ETF (QQQ) weekly
There is no indication this will change any time soon. See QQQ and XLK charts (above).
If you would like an analysis of any equity or ETF you are considering or already own just send me an email. I would be happy to help.
Trade Smart,
Don Roth