We had an eventful week this week. GDP and Jobless Claims numbers both came in quite lower than expected, PCE came in hotter than expected, and GOOG, META, AMZN, and MSFT all reported their earnings. With all these market-moving events, we saw quite a bit of volatility, but any fears presented within them were shrugged off as two of the three major indices closed the week with a great deal of strength. Will the old adage ‘Sell in May and go away’ be good advice this year, or is the market just starting to heat up again? Let’s dig into the individual names below.
This week, the SPY ETF closed at $415.93 (+0.91%), taking out the previous high of the past few weeks’ range. Above lies the top of the daily Bollinger Bands and the unfilled gap from September 2022. This month marks the first monthly close above the aVWAP from the all-time high since March of 2022, a notable change of trend.
This week, the QQQ ETF closed at $322.56 (+1.88%), finding daily support at the 34-period SMA and also taking out the previous high of the past few weeks’ range. Of note is the negative divergence seen in momentum on the daily time frame and the Blue Doji candle on the monthly, which represents strong indecision. Above lies the 50% Fibonacci retracement level from the all-time high which could act as a resistance level if this index is to move higher in the weeks to come.
This week, the IWM ETF closed at $175.20 (-1.33%), making it the weakest performer of the bunch. The price found resistance at the top of the descending channel on the daily time frame, which also coincides with the level of the middle Bollinger Band and the 34-period SMA. If this index is to find support and lift higher from here, the aVWAP from the Covid low could be a key level of resistance in the weeks to come.