Markets continued their volatile sideways trading theme, this time leaving the S&P 500 (SPY) down five consecutive days to finish Week 30 -3.9% for an approximate -2.0% loss on the month of July. 

Broad oversold conditions in the Price Index columns and a VIX stretched nearly 25% above its short-term moving average suggest that we are well primed for bounce on a last minute Debt Ceiling resolution and change of month effects. However, sitting so perilously close to the 200-day moving averages after dour economic reports and a Jobs Friday ahead [see “Next Technical Support“], I have to think traders are weighing that possibility with a large grain of salt.

[Week 31 Economic Calendar]


Source: Mrkt_Commentary subscription service; prior weekly posts.