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04/01/2022 |

Market Update Into 4/4: A Constructive Week for Bulls

The week started out very strong, with all the major indices taking out their early February highs. After Tuesday, however, sellers gained control and the markets sold off into Friday. The selling was, however, on lower volume so it is possible that the markets are just trying to digest their gains from over the past few weeks. This would be constructive behavior and would give more weight to the potential of a continuation move higher in the coming weeks. Let’s look at the individual names.

Weekly Analysis

This week, the $SPY ETF closed at $452.89 (+0.04%). Support was found above the 200-day SMA, and price closed back in the area that’s acted as a major level of support and resistance over the past 6 months. The weekly candle is a bit discouraging looking, but some selling was expected after such a strong move off the lows.

$SPY daily and weekly charts.

This week, the $QQQ ETF closed at $361.89 (+0.71%), making it the strongest performer of the three indices. The 200 day SMA acted as resistance this week, but price was able to make a new local high, which is encouraging. It is all but certain that traders will have a keen eye on weekly ‘Inverted Hammer’ candle that formed.

$QQQ daily and weekly charts.

This week, the $IWM ETF closed at $207.46 (+0.65), making it the second-strongest performer of the three major indices. Resistance was found exactly where one would expect, at the aVWAP from ATH and the orange zone of previous support. This index has a lot of overhead supply, so it’s not surprising to see price rejected at it’s first attempt at these levels.

$IWM daily and weekly charts.

Top Twitter Posts This Week

$AAPL chart by @KessInvesting on Twitter. $MSFT chart by @TradeForOpp on Twitter. $GBTC chart by @TradeOutLoud on Twitter.