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04/29/2022 |

Market Update Into May 2nd – Markets On The Edge

The last few months have been a whirlwind for both bulls and bears but it seems that now we’ve arrived at a major inflection point. With all the major indices closing out the month breaking down below pivotal levels of support, it’s hard not to be on edge whether you’re a day trader or a long term investor. Where they go next is anyone’s guess, but the charts do not favor the bulls at this time.

We’ll dig into the individual names below, but first, an update from Jake.


This week, the $SPY ETF closed at $412.05 (-3.28%). This pivotal close puts this index on very thin ice for the weeks and months ahead. For potential support below, we look next to the aVWAP from the Covid low. This indicator also aligns with the .382 fib retracement level measured from Covid low to ATH.

This week, the $QQQ ETF closed at $313.24 (-3.74%), right at the aVWAP from the Covid low as well as the .382 fib retracement when measured from Covid low to ATH. If this level were to break down, the 50% fib retracement might be the next place to look for support.

This week, the $IWM ETF closed at $185.11 (-3.93%), breaking down below both the aVWAP from the Covid low as well as the .382 fib retracement when measured from Covid low to ATH. One might look to the 50% fib retracement as a potential level of support in the coming weeks. Interestingly, that level lines up with the Heatmap area seen on the weekly chart.


 

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