After last week’s inside candles, traders were hoping for a powerful move either higher or lower this week. Unfortunately, we got just the opposite; Continued consolidation. This additional week of consolidation only serves to provide more fuel to the potential for a powerful move in the coming weeks as early longs and shorts slowly and frustratingly get stopped out of their positions. The charts seem to be suggesting that lower prices are on the horizon, but how much lower, and for how long, is still in question. We’ll dig into the individual names below, but first, a word from Jake!
This week, the SPY ETF closed at $407.27 (-0.20%), just barely taking out last week’s low and looking poised for a continuation lower. Below lies the 200-day SMA, the AVWAP from the October 2022 low, as well as the 50% Fibonacci retracement of the current swing low to high, all around $390. This could be a powerful area of support in the weeks to come.
This week, the QQQ ETF closed at $301.16 (+0.48%), just barely managing to close inside on the week. If the SPY is any tell, this index could continue its move lower in the coming weeks and traders will be looking to the 200-day SMA, as well as the AVWAP from the October 2022 low as two potential levels of support.
This week, the IWM ETF closed at $193.13 (+1.48%), going inside for a second week in a row, and just barely closing above the all-important AVWAP from ATH. Below lies the Fibonacci retracement levels of the current swing, as well as the 200-Day SMA and the AVWAP from the October 2022 low.