Summer Doldrums Continue

After this past week we have back to back weekly losses in the equities markets.   If you want to blame something, the big disappointment this week was the spike in claims for unemployment benefits.

On the other hand, we saw bonds continue to rally.  Even though all the experts keep saying interest rates, which move in the inverse to bond prices, can not go any lower, they do as people bid up the price of bonds.

While we have seen some indications of strength in some areas, in general we are moderately cautious on equities at the moment, especially domestic equities.  We are entering the weakest period of the year historically:  the months of September and October.  Keep this in mind when reviewing your equity allocations.

 After the "death-cross" earlier this summer, the S&P 500 briefly reclaimed its 200 day MA only to fall back below the 200 and 50 day MA.  Watch the 1060 area for support, if that is given the 1000 - 1010 range is next.  After that...???