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07/28/2023 |

Market Update Into July 31st: Markets Shrug Off Rate Hike

This week, the markets’ focus was the FOMC decision on Wednesday, where Powell and gang decided to raise interest rates by an additional 25 bps to the highest level in over 22 years. The action was muted leading into the event, but volatility came back on Thursday and Friday, allowing both bulls and bears to capitalize. Ultimately, the bulls won again as indices closed higher across the board. Next week brings important earnings announcements from major tech players like AAPL, AMZN, and more, so traders will need to remain on their toes. Let’s dig into the charts and see how things are looking!

Weekly Analysis

This week, the SPY ETF closed at $457.18 (+1.05%), making it the second-strongest performer of the group. Since the bullish MACD cross last month, this index has continued higher and seems poised to test the monthly upper Bollinger Band in the weeks to come.

This is a monthly chart of the SPY index.

This week, the QQQ ETF closed at $383.48 (+2.09%), making it the strongest performer of the group. Since the bullish MACD cross two months ago, the price has been slowly making its way higher, potentially targeting the upper Bollinger Band on the monthly chart. 

This is a monthly chart of the QQQ index.

This week, the IWM ETF closed at $194.43 (+1.01%), making it the weakest performer of the group. Like its counterparts several months ago, there’s a bullish MACD cross forming on the monthly time frame just as the price is closing above the middle Bollinger Band for the first time since January 2022. It’s notable that this same set of conditions led to a continuation higher on both the SPY and QQQ.

This is an image of the IWM monthly chart.

The weekly market update is written by Jason Krutzky, host of TrendSpider TV