Trend & Cycle Roadmap – September 1, 2021
In this week’s Roadmap
- The S&P 500’s uptrend remains impressively resilient - Staying invested in the equity market can be challenging for investors given valuation concerns, potentially slowing earnings growth and uncertainty regarding changing Federal Reserve balance sheet and interest rate policies. We highlight the S&P 500 support levels that would need to be broken to signal that the current uptrend is beginning to falter.
- Revisiting key technical levels for US 10-year yield and the Russell 2000 – While technology and growth stocks power the S&P 500 higher, the bond market and Russell 2000 have sent a very different message in Q2-Q3. We continue to expect US 10-year yield to complete a bottoming pattern through Q3 into Q4 and for the Russell 2000 to resolve its 5-month trading range to the upside. This week’s charts illustrate the key upside and downside levels we are monitoring to confirm or negate our optimistic outlook.
- A look at the Euro-Yen currency pair and what it may mean for equity portfolios Understandably, most equity investors don’t spend a great deal of time focused on currencies. However, the behavior of the Euro and the Japanese Yen often signals important changes in the outlook for global economic growth. The recent Q2-Q3 pullback in the Euro-Yen is worth reviewing given it will impact how a portfolio performs moving into Q4 and Q1 2022.
Click here for This Week's Roadmap
Connor Ryan, MBA
Investment Advisor
connor.ryan@rbc.com
905-895-4102