Market Update Into 6/20: The Pain Continues
The week began with a bang, taking out the ‘Must Hold’ areas from the previous week on all of the indices. Though the news of a 75bps rate hike brought some strength and hope to the markets on Wednesday, it seems that was just another opportunity for short sellers to reload as we saw markets gap down on Thursday and trade down to weekly lows on Friday. We’ll take a look at where we stand on the individual names below, but first, a word from Jake.
This week, the $SPY ETF closed at $365.84 (-6.15%), failing at the previous range lows and closing near lows for the week. The $350 level, which coincides with the 200-week SMA, seems an inevitable target in the coming sessions. This is the next level where we could see bulls step in again.
This week, the $QQQ ETF closed at $274.71 (-4.89%), and similar to the $SPY, has the 200 week SMA just below around the $265 level. We do have our eye, also, on the potential RSI Divergence that appears to be forming on the weekly time frame.
This week, the $IWM ETF closed at $165.18 (-7.51%), making it the weakest performer of the bunch. This is a change in trend for the name, as it has been the top performer more often than not recently. It has failed below its 200-week SMA, but there is a potential RSI divergence forming on the weekly time frame.