02/24/2023 |
Market Update Into February 27th: Indices Slide Into Support
Last week, we suggested that there might be a bit more downside ahead, and we got exactly that this week. The inflation numbers came in hotter than expected, and there are renewed fears among market participants that this bull run we’ve been in has run its course. That said, the indices find themselves now at important longer-term levels, specifically, the 200-day SMA and the point of control from the Covid lows. Let’s dig into the individual names below!
Weekly Analysis
This week, the SPY ETF closed at $396.38 (-2.67%), finding support at the point of control from the Covid low and the 20-week SMA but getting rejected at the 50% Fibonacci retracement of the all-time high to 2022 low. Needless to say, the PoC and 20-week SMA will be pivotal levels to hold in the weeks to come.
This week, the QQQ ETF closed at $291.85 (-3.09%), just above the downward-sloping trendline from the all-time high as well as the 20-week SMA and the point of control from the Covid low. It appears that the monthly candle is being rejected at the AVWAP from the Covid low, and traders on both sides likely have an eye on that level.
This week, the IWM ETF closed at $187.51 (-2.91%), above the 20-week SMA, the downward-sloping trendline from the all-time high, and the AVWAP from the Covid low. The 38.2% Fibonacci retracement from the all-time high to the 2022 low is currently acting as resistance.
The weekly market update is written by Jason Krutzky, host of TrendSpider TV.
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