08/04/2023 |
Market Update Into August 7th: Markets Get Downgraded
It was a tumultuous week in the markets, with a US credit rating downgrade on Wednesday sending stocks into a tailspin. Bulls held out hope for earnings announcements from major tech players like AAPL and AMZN to save the falling market, but those hopes were dashed by a swift sell-off to close out the week. How indices proceed from here is questionable, but let’s look at the charts and see what we can glean from them!
Weekly Analysis
This week, the SPY ETF closed at $446.81 (-2.21%), taking out last week’s low and putting in quite a bit of volume below the .786 Fib retracement from the all-time high to the 2022 low. Just below is the 8/21 SMA cloud, which could act as support in the weeks to come if this index is to continue lower.
This week, the QQQ ETF closed at $372.01 (-2.98%), making it the weakest performer of the bunch. The price closed below the .786 Fib retracement from the all-time high to the 2022 low, and the raindrop candle shows most of the volume below that level. Ultimately, this index found support at the 8-week SMA.
This week, the IWM ETF closed at $194.19 (-1.15%), making another new weekly high and cementing it as the strongest performer of the group. After failing multiple times this year to gain the .382 Fib retracement from the all-time high to the 2022 low, it does appear that level is now acting as support. A break and hold below could signal a move back into the 8/21 SMA cloud.
