06/03/2022 |
Market Update Into 6/6: A Consolidation Week
After last week’s strong move off the recent lows, some consolidation was expected and exactly what we got this week. Monday was strong, trapping late bulls, and then we saw a continuation of that strength on Thursday. Friday gave us another consolidation day, killing premium on both sides. It’s easy to feel unsure in this market, so let’s dig into the individual names and see if we can make sense of what’s going on!
Weekly Analysis
This week, the $SPY ETF closed at $410.57 (-1.13%), taking out last week’s high and consolidating in the top of the range. The .236 Fib level when measured from Covid low to last year’s high is acting as perfect resistance on the higher time frames. On the daily chart, we can see the aVWAP from the March high as a main level of resistance, as well. If price can get above this week’s highs, maybe we see a move to the ‘zone of interest’ around $430 in the coming weeks.
This week, the $QQQ ETF closed at $306.08 (-0.95%), and much like the $SPY, took out last week’s highs and consolidated in the top of the range. The .382 Fib level when measure from Covid low to last year’s high and the aVWAP from the same point are acting as perfect resistance for now.
This week, the $IWM ETF closed at $187.1 (-0.29%), making it the strongest performer of the bunch, a trend we’ve see quite a bit recently. On the larger time frame, we see the Covid low aVWAP and the .382 Fib level acting as resistance for now. Price did manage to briefly trade above the aVWAP from the March high, a differentiator for this name in comparison to $SPY and $QQQ, which both failed to gain that particular level.
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