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06/07/2024 |

Market Update Into June 10th: The Return of Roaring Kitty

It was a thrilling week in the markets! The man of the hour, Roaring Kitty, made his truimphant return to live streaming in the same week that NVDA tagged a $3T valuation. As a result, traders and investors were electrified and pushed the indexes into new all-time highs once again. In other news,

While these events have been exciting, many in the trading world are shining a light on their ‘toppy’ vibe, and that’s not an unreasonable suggestion to make. Can the cup and handle formations continue to play out? Will the small caps finally catch up? Let’s dig into the charts and see how the week ended.

Weekly Analysis

SPY (SPDR S&P 500)

After several days retesting the March highs, the SPY ETF managed to find its footing and push higher, closing the week at $534.01 (+1.26%). Additionally, MACD is back in positive territory, turning up and showing the beginnings of a bullish cross.

This is a daily chart of the SPY index.

QQQ (Invesco QQQ Trust)

Much like the SPY, the QQQ ETF found clear support at the March highs and rallied to make new all-time highs on Friday and close the week at $462.96 (+2.72%). Additionally, a clear bullish cross up is visualized on MACD, a sign that this move could just be getting started.

This is a daily chart of the QQQ index.

IWM (iShares Russell 2000)

The doldrums returned for the small caps, which closed at $201.20 (-2.47%) this week after failing to push out of the handle. Despite last week’s relative strength, this index has struggled since the bearish MACD cross in late May.

This is a daily chart of the IWM index.

Earnings

This is an image of the most important earnings results from the week.

Notable Results

GME (GameStop)

  • EPS: $(0.12)  vs  $(0.09) est
  • SALES: $881.80M  vs  $995.30M est

DOCU (DocuSign)

  • EPS: $0.82  vs  $0.79 est
  • SALES: $709.60M  vs  $707.13M est

NIO (Nio)

  • EPSAD: $(0.33)  vs  $(0.31) est
  • SALES: $1.37B  vs  $1.48B est

LULU (Lululemon)

  • EPS: $2.54  vs  $2.39 est
  • SALES: $2.21B  vs  $2.20B est

FIVE (Five Below)

  • EPS: $0.60  vs  $0.63 est
  • SALES: $811.86M  vs  $836.97M est

DLTR (Dollar Tree)

  • EPS: $1.43  vs  $1.42 est 
  • SALES: $7.63B  vs  $7.63B est

CRWD (CrowdStrike)

  • EPS: $0.93  vs  $0.89 est 
  • SALES: $921.04M  vs  $904.66M est

HPE (Hewlett Packard)

  • EPS: $0.39  vs  $0.42 est 
  • SALES: $7.12B  vs  $6.83B est

What’s Happening Now

NVDA (Nvidia)

Holders of Nvidia at market close Friday, June 7th, qualify for Nvidia’s historic 10:1 split, which will take effect before the market opens on Monday. NVDA closed the week at $1,208.88/share, which means shareholders will now own 10 shares @ 1/10th the cost (~$120.88 each). A mostly psychological change, this split will make common shares & options trading more accessible.

This is an image of all of NVDA's split dates and amounts.

SPY (SPDR S&P 500)

This week the S&P 500 achieved its highest weekly close ever, plus announcements for rebalancing changes that will take effect June 27th. CrowdStrike, KKR, and GoDaddy will join the index, with Robert Half, Comerica, and Illumina being cut. Adding fuel to the fire, BOC and ECB surprise rate reductions stir speculation for a potential US cut in July.

This is a market map of the S&P 500.

QCOM (Qualcomm)

QCOM has rallied an impressive 99% since bottoming at $103.75 in October 2023, but technicals are flashing signs of exhaustion. Daily RSI has formed a bearish divergence while MACD has rolled over.. just as seasonal weakness rounds the corner! YTD aVWAP stands at $167/share.

This is a seasonality chart of Qualcomm.

Believe it or not, this is just a fraction of what happened in the markets this week. For a full run down delivered straight to your inbox every weekend, sign up for The Official TrendSpider Newsletter.