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07/29/2018 |

Market Update Into 7/30: Interesting Technical Charts Into Monday

A prepared trader is a profitable trader, and Sunday is a great day to get ready for the week. One way to do that is by checking out one of the most powerful features on TrendSpider, Multi-Time Frame Bollinger Band Analysis. We’re focused on a potential downward reversal in broad market indices this week based on some big moves last week by larger technology companies such as Facebook.

Below are three key ETFs representing parts of the broad markets that we have analyzed and identified interesting trendline/Bollinger Band setups. We believe keeping an eye on these is crucial to watch this week as a short-term reversal could be in the works based on our findings.

Ticker #1: $SPY

$SPY chart showing that it is trading in a tight upward channel.

  • $SPY is trading in a tight upward channel with the third touch of resistance above happening this week. The last two times this has occurred, price moved down quick to the EMA (50) and SMA (20) below.
  • The resistance zones above coincide perfectly with the daily upper Bollinger Band (overlay on the 240-minute candle).
  • The 60-minute candle is trading right at support but recently broke down through the SMA (50) and SMA (20).

Video Analysis


Ticker #2: $XLK

$XLK resistance tested 6 times above with a false breakout on the 7th try and then a hard move down to the EMA (50) and SMA (20).

  • Very similar setup to the $SPY 240-minute chart with resistance tested 6 times above with a false breakout on the 7th try and then a hard move down to the EMA (50) and SMA (20).
  • Ascending wedge formation is one to keep an eye on for the bearish thesis.
  • The 60-minute candle is holding support for now but looking weak into next week.

Video Analysis


Ticker #3: $XBI

$XBI perfect touch of support below with the 240-minute candle close outside of the daily Bollinger Band.

  • A perfect touch of support below with the 240-minute candle close outside of the daily Bollinger Band.
  • The 60-minute candle is showing more downside possible to the $92.50 zone.
  • If the $92.50 zone breaks on the 60-minute candle, XBI’s price could continue quickly down to the pink support line below around $88.

Video Analysis