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03/08/2024 |

Market Update Into March 11th: Monthly Trendlines Come Into Play

It was another impressive week across the indexes, with the three major index ETFs putting in fresh new highs just before a Nonfarm Payroll-induced sell-off on Friday. The small caps were the clear overachievers this week, perhaps suggesting some rotation is in order, and that would make sense considering the Wyckoff Accumulation pattern we’ve been noting for some time now.

Let’s dig into the highlights across the markets, from index performance to notable earnings and what’s happening now!

Weekly Analysis

SPY (SPDR S&P 500)

Despite making new weekly highs and breaking for the first time above the monthly trendline connecting the 2000 and 2021 highs, the SPY ETF ended the week slightly lower, at $511.72 (-0.21%).  The monthly RSI is notable in that it is still well below an overbought reading.

This is a monthly chart of the SPY index.

QQQ (Invesco QQQ Trust)

Much like the SPY ETF, the QQQ ETF is also flirting with its monthly trendline that connects the 2000 and 2021 highs. Closing the week at $439.02 (-1.48%), this index is currently presenting a bit of a concerning look on the monthly timeframe, but there are still several weeks for the candle to develop.

This is a weekly chart of the QQQ index.

IWM (iShares Russell 2000)

As the strongest performer of the group this week, the IWM ETF found resistance within the low-volume area and closed at $206.83 (+0.46%). The weekly doji candle is certainly worth keeping a close eye on, but the CHATS indicator closing above 70 says strength is present under the hood and this uptrend could just be getting started.

This is a weekly chart of the IWM index.

Earnings

This is an image that shows all of the notable earnings that are listed below.

Notable Results

KR (The Kroger Company)

EPS: $1.34 vs $1.13 est.
SALES: $37.06B vs. $37.11B est.

ANF (Abercrombie & Fitch Company)

EPS: $2.97 vs. $2.83 est.
SALES: $1.45B vs. $1.43 est.

JD (JD.com, Inc.)

EPS: $0.75 vs $0.63 est.
SALES: $43.11B vs. $42.16B est.

CRWD (Crowdstrike Holdings, Inc.)

EPS: $0.95 vs. $0.82 est.
SALES: $845.34M vs. $839.04M est.

NIO (Nio, Inc.)

EPS: $0.39 vs. $0.51 est.
SALES: $2.41B vs. $2.29B est.

TGT (Target Corporation)

EPS: $2.98 vs. $2.41 est.
SALES: $31.92B vs. $31.83B est.

SE (Sea Limited)

EPS: $0.19 vs. $0.72 YoY
SALES: $3.62B vs. $3.53B est.

FL (Foot Locker)

EPS: $0.38 vs. $0.32 est.
SALES: $2.38B vs. $2.27B est.

COST (Costco Wholesale Corp.)

EPS: $3.71 vs. $3.61 est.
SALES: $58.44B vs. $59.16B est.

AVGO (Broadcom Inc.)

EPS: $10.99 vs. $10.29 est.
SALES: $11.96B vs. $11.71B est.

What’s Happening Now

NVDA (NVIDIA Corp.)

Nvidia insiders are cashing in, selling shares at a rate not seen in nearly a year—following a hefty 75% rise in stock value year-to-date and an impressive 260% increase over the past year, highlighted by Director Tench Coxe’s massive $170 million sale on March 5th.

This is an image of NVDA insiders major sales this year discussed in the above copy.

SPY (SPDR S&P 500)

Buy the dip? Jumping on the SPY dip early in the week, specifically after Monday’s slump and Tuesday’s deep plunge, has consistently rewarded investors with a significant Thursday-Friday rally throughout 2024, a trend backed by clear seasonality patterns.

This image shows SPY seasonality broken down by day of the week. So far this year, Tuesday is clearly the worst performing day with the lowest percentage chance of going green on the day while Thursday is the strongest performing day with the highest percentage chance of a green day.

BRK.A (Berkshire Hathaway, Inc.)

Warren Buffett’s Berkshire Hathaway has been on a buying spree, not of other companies or semiconductor stocks, but of its own shares, pouring hundreds of millions into buybacks over recent months.

This is an image that shows all share buybacks that insiders at Berkshire Hathaway have made this year.


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!