Market Update Into January 30th: The Bulls Are Back In Town
Last week, we noted that indices looked to be setting up for higher prices across the board, and that’s exactly what we got this week! The critical economic data that traders were waiting on all came in, in-line, and the markets were pleased! Late longs might see this move as extended, and there are some worries about J-Pow and the FOMC announcement next week, but this writer thinks there’s more juice in the tank. Let’s dig into the individual names below, but first a word from Jake!
This week, the SPY ETF closed at $405.69 (+2.48%), managing to finally break through the downward-sloping trendline from all-time highs. The next level of potential resistance lies at the .786 Fibonacci retracement level from the previous swing.
This week, the QQQ ETF closed at $296.19 (+4.78%), managing to definitively break through its 200-day SMA and the downward-sloping trendline from all-time highs. The daily RSI reading is starting to get into overbought territory, and above lies the infamous aVWAP from the Covid lows.
This week, the IWM ETF closed at $189.56 (+2.44%), managing to gain its aVWAP from the Covid low, something it has been unable to do since last August. Like the SPY, above lies the .786 Fibonacci retracement from the previous swing as potential resistance.
The weekly market update is written by Jason Krutzky, host of TrendSpider TV.