THE CHAPMAN REPORT – Technical Commentary (short)

As previously noted only a short form Technical Commentary is provided this week. This will also be the case for next week.

This week

• The markets continue to meander higher as the economic recovery continues although thus far it is primarily been a jobless recovery. There was an improvement in the jobs picture in Canada as Canada continues to outperform the US. But signs abate that investors should treat the current up move with caution.

• Bonds were overall weak this past week as the stronger economic numbers in Canada hurt the bond market. Only a weak consumer confidence number in the US prevented US bonds from falling (in price).

• Gold fell this past week despite weakness in the US$ which is unusual. The breakout made the previous week is, however, thus far intact but support lies are just below or a test of the lows will be underway.

• Energy prices fell late in the week following release of the consumer confidence numbers.