Market Update Into February 13th: Markets Pause Ahead Of CPI
Last week, we suggested that markets might be in need of a rest, with prices becoming extending and coming into longer-term areas of resistance. This week, we got just that! Five days of a tug-of-war between bulls and bears resulted in inside bars across all the major indices. The CPI reading, due out during premarket next Tuesday, is largely being viewed as the next big catalyst so participants will be watching this week’s highs and lows for the signal to the next directional move. Let’s dig into the individual names.
This week, the SPY ETF closed at $408.04 (-1.05%), managing to stay caught up between all the important technical levels mentioned last week but finding support at the AVWAP hand-off. The inside bar on the weekly candle is notable, as a move above this week’s highs or lows could trigger continuation in the same direction.
This week, the QQQ ETF closed at $299.70 (-2.12%), failing to make any real progress relative to where last week’s candle closed. Much like the SPY, the QQQ weekly candle went inside, signaling indecision between buyers and sellers and setting this index up for a potentially powerful move next week.
This week, the IWM ETF closed at $190.31 (-3.40%), and much like its counterparts, failed to make any headway in either direction. The strong red weekly close is notable, but the inside weekly candle means next week could bring a strong move post CPI.
The weekly market update is written by Jason Krutzky, host of TrendSpider TV.