Market Update Into January 16th: Indices Poised For Higher Prices?
For all intents and purposes, this week was a very strong week across the indices. If you’re bullish leaning here, there’s quite a bit to like. That said, last year, when the markets got looking this way, it was due time for a reversal and a move lower. Will the same be true in 2023 or is the worst behind us? We’ll likely find out sooner than later! Let’s dig into the individual names, but first, a word from Jake!
This week, the SPY ETF closed at $398.50 (+2.69%), making it the weakest performer of the group. If you’re bullish, there’s a lot to potentially like on this chart. A solid close over the 200-day SMA, another weekly hold of the aVWAP from the Covid low, a rounding bottom formation on the weekly RSI, and a potential inverted head and shoulders pattern on the daily all point to the potential for continuation higher.
This week, the QQQ ETF closed at $280.97 (+4.53%), performing strongly but still lagging well behind its counterparts. RSI and the falling wedge on the weekly time frame give the look that continuation higher is possible, as does the potential inverse head and shoulders forming on the daily time frame.
This week, the IWM ETF closed at $187.05 (+5.33%), making it the strongest performer of the group. On the weekly chart, price closed just below the aVWAP from the Covid low. On the daily chart, we see a strong close above the 200-day SMA. Like SPY and QQQ, this index also looks poised for continuation higher.
The weekly market update is written by Jason Krutzky, host of TrendSpider TV.