03/03/2023 |
Market Update Into March 6th: Blue Raindrops Abound!
Last week, we noted that indices were nearing important levels for a potential bounce, namely, the 200-day Simple Moving Average. After a few down days to start the week, bulls got exactly what they were hoping for and markets rallied on Thursday and Friday leaving late shorts wishing they’d stayed on the sidelines. How much higher we go from here is anyone’s guess, but the fact that markets held where they did seems significant. Let’s dig into the individual names below!
Weekly Analysis
This week, the SPY ETF closed at $404.19 (+2.03%), bouncing off the anchored VWAP from the October low and the 200-day SMA. If this index is indeed putting in a double bottom on the weekly time frame, as the chart pattern detection tool is suggesting, it will need to gain the resistance level in between the two lows, around $430.
This week, the QQQ ETF closed at $299.68 (+2.63%), finding support at the 200-day SMA and rallying strongly off that level. Above lies the top of the rising channel as well as the anchored VWAP from the all-time high as potential resistance in the weeks to come. A Blue Doji Raindrop is present on the weekly timeframe, signaling indecision between buyers and sellers.
This week, the IWM ETF closed at $191.50 (+2.13%), printing a Blue Doji Raindrop candle on the weekly timeframe, which can sometimes act as a reversal signal. This index found support at the 50-day SMA and bulls will be looking for price to break and hold above the rising channel and the AVWAP from the all-time high if this move is to continue.
The weekly market update is written by Jason Krutzky, host of TrendSpider TV.
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