Another week has come and gone and we find ourselves making new lows in two out of the three major indices. Though it seemed as though the markets were beginning to stabilize early in the week, those hopes were swiftly dashed on Wednesday. With the bear market in full swing, market participants are hoping for some kind of relief bounce in the coming weeks but when it comes and how powerful it will be is anyone’s guess. Let’s dig into the individual names.
This week, the $SPY ETF closed at $389.59 (-3.02%), and much like last week, took out the previous week’s low. A bright spot could be found in that price did manage to close just above the aVWAP from the March 2020 low thanks to a powerful, late-session rally on Friday. Was this just shorts covering into the weekend or something more?
This week, the $QQQ ETF closed at $288.54 (-4.44%), also taking out the previous week’s low and closing with RSI levels not seen since March of 2020. The red candle on the weekly marks 7 in a row, a feat not achieved on this index since 2001.
This week, the $IWM ETF closed at $176.18 (-1.06%), making it the strongest performer of the bunch. On the weekly side, the only constructive thing we see is that this index was unable to make a new low against last week’s low. In addition, the pair of Doji candles could be signaling a reversal is near. That said, there is an unfilled gap that one would expect to fill sooner than later.
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