Market Update Into March 13th: Banks Go Bust
In markets, it’s imperative to always stay on your toes and this week proved that with the news from SIVB. Widespread fears of a bank run created a bit of panic, causing most stocks, including the major indices, to end the week sharply lower. Let’s dig into the individual names and see how the dust settled.
This week, the SPY ETF closed at $385.91 (-4.58%), losing the 200-day SMA, the AVWAP from the October low, and reentering the downward sloping channel from the all-time highs. Below lies the 50% Fibonacci retrace from the October low and the VWAP from the Covid low, but the above-average volume and the ‘No-Go’ reading of the Go-No-Go indicator suggests there could be more downside ahead.
This week, the QQQ ETF closed at $288.55 (-3.79%), just below the 200-day SMA and PoC from the Covid low, but above the AVWAP from the October low and the downward-sloping channel from the all-time high. The Go-No-Go highlighting suggests a ‘Strong No-Go’ reading, but this index was the strongest of the bunch this week.
This week, the IWM ETF closed at $176.18 (-8.00%), cementing it as the weakest performer of the bunch. It failed below the 200-day SMA, the AVWAP from the October low, the VWAP from the Covid low, and the .618 Fibonacci retracement from the October low. The above-average volume suggests the potential for further downside ahead.
The weekly market update is written by Jason Krutzky, host of TrendSpider TV.