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12/08/2023 |

Market Update Into December 11th: A Choppy Week Closes Near Highs

The name of the game this week was chop, as investors awaited the release of the non-farm payroll (NFP) and unemployment data on Friday. When the NFP data was released, it showed stronger-than-expected results, contrasting with a lower-than-anticipated unemployment rate. In recent times, such positive economic indicators have been perceived negatively by the markets, often intensifying expectations of a ‘higher for longer’ environment. However, that trend was bucked this week. Despite an initial decline, the markets swiftly rebounded, with the three major indices finishing the week at or near their highs. Let’s dig into the individual names and see how the charts are looking!

Weekly Analysis

This week, the SPY ETF closed at $460.20 (+0.24%), up modestly relative to last week’s close. Though momentum has been trending up over the past month and a half, it appears poised to finally flip positive in the weeks to come. Additionally, for the second consecutive week, the price has successfully remained above a crucial support/resistance level.

This is a weekly chart of the SPY index.

Despite taking out two weeks of lows, the QQQ ETF managed to reverse and close the week at $392.17 (+0.57%). The CHATS indicator has reached above 70 for the first time since July, indicating significant underlying trend strength. Concurrently, the TTM Squeeze indicator is firing for the first time in ten weeks, suggesting the potential for a new period of volatility.

This is a weekly chart of the QQQ index.

As for the IWM ETF, it closed the week at $186.80 (+1.02%), making it the strongest performer of the group. The price managed to trade into a key support/resistance zone but got rejected at the anchored VWAP from the all-time high. This will be the key level to gain in the weeks to come.

This is a weekly chart of the IWM index.