Market Update Into 5/16: It’s Hammer Time
Another intense week in the markets has come to an end and we find ourselves at key levels across the major indices. Though we are far from ‘out of the woods’, we do appear to be at logical levels for reversal, even if only short-term. Let’s break into the charts below.
This week, the $SPY ETF closed at $401.69 (-2.35%), taking out last week’s low but putting in a potentially bullish hammer reversal candle. The AVWAP from the Covid low served as almost perfect support, and this will be an important level to hold going forward. In the chart below, we see some heat map levels above that could serve as resistance pending price is able to continue to the upside.
This week, the $QQQ ETF closed at $301.92 (-2.37%), and much like the $SPY, took out last week’s lows and closed with a potentially bullish hammer reversal candle. Price remains below the pivotal AVWAP from the Covid low, so we might watch to see how price reacts there if it is able to continue higher next week.
This week, the $IWM ETF closed at $178.14 (-2.43%), making it the weakest performer of the bunch. That said, much like $QQQ and $SPY, this index put in a potentially bullish hammer reversal candle at a key price level, so a continuation higher next week would not surprise.