06/09/2023 | by Jason Krutzky

Market Update Into June 12th: The Rotation Has Arrived

BlogMarket CommentaryMarket Update Into June 12th: The Rotation Has Arrived

Last week, we suggested that the market might be due for some rotation, and that’s exactly what we got this week. Strength came into the small caps while tech got stuffed at the highs. The indices now find themselves at interesting spots and the big question for next week is whether or not further cooling is ahead for the large caps. Let’s dig into the individual names and see where we are!

Weekly Analysis

This week, the SPY ETF closed at $429.89 (+0.46%), just barely managing to make a new high relative to the August 2022 high and stalling right at the .618 Fibonacci retracement level from the all-time high. If this index cools in the coming days and weeks, the gap below and the May aVWAP could be levels to watch for support.

This is an image of a daily and weekly chart of the SPY index.

This week, the QQQ ETF closed at $354.50 (-0.04%), making zero headway relative to last week’s close and nearly filling the gap above, pictured on the daily chart. The 5-period SMA is flattening out and there is also a small RSI divergence forming on the daily time frame, suggesting slight weakness under the hood.

This is an image of a daily and weekly chart of the QQQ index.

This week, the IWM ETF closed at $185.03 (+1.65%), testing and holding the aVWAP from the January high and the middle Bollinger Band on the weekly time frame. It found resistance just shy of the aVWAP from the all-time high, and if strength is to continue in this name, that will be a big level to watch in the days and weeks to come.

This is an image of a daily and weekly chart of the IWM index.