The Bottom Line
Early technical signs of a short term recovery in North American equity markets have surfaced despite a volatile political environment. However, strength is expected to remain spotty. Strongest sectors last week were materials and consumer discretionary. Weakest sectors were technology, utilities, consumer staples and healthcare. Selected sectors that show positive seasonality starting in the month of July came through with gains (most notably fertilizers and gold equities). Technically, fundamentally and seasonally, North American equity markets are lining up for a period of strength that could last until the second half of July. This trade is not for the investor (strictly a short term trade). Investors can continue to hold a healthy position in cash equivalents.

View all 45 Charts and commentary HERE

The S&P 500 Index slipped 3.05 points (0.24%) last week. Intermediate trend is up. The Index bounced nicely from near its 200 day moving average. Short term momentum indicators have bottomed and are trending higher.

The TSX Composite Index gained 118.94 points (0.92%) last week. Intermediate trend is down. The Index trades below its 50 and 200 day moving average. Short term momentum indicators have bottomed and trending higher. Strength relative to the S&P 500 has been negative, but is showing early signs of change.

The U.S. Dollar Index gained 0.69 last week. Short term trend is up. Intermediate trend is down. Short term momentum indicators are overbought, but have yet to show signs of peaking.

Gold fell $36.90 (2.40%) last week. On Friday it fell below its 50 day moving average. Gold remains in a 10 month trading range between $1,473.90 and its all time closing high at $1,563.20. Intermediate trend remains up. Short term momentum indicators are oversold, but have yet to show signs of bottoming. Gold equities and related ETFs have started to outperform gold.

View all 45 Charts and commentary HERE