Though the fears of the debt ceiling loomed heavy this week, markets were relieved to hear that lawmakers were close to an agreement on Friday. With this news came an incredible rally, allowing both the QQQ and SPY to make up most, if not all, of what they had lost earlier in the week. Tech is now in full-on breakout mode, with the other indices seemingly primed to follow suit in the days and weeks to come. Let’s dig into the charts!
Weekly Analysis
This week, the SPY ETF closed at $420.02 (+0.33%), finding resistance at last week’s high, but closing higher than it has since August of last year and almost completely filling the gap above that’s present on the daily chart. The next logical level to test if this index is to continue higher is the second unfilled gap higher and the August 2022 high.
This week, the QQQ ETF closed at $348.40 (+3.53%), filling the gap from April 2022 and closing right at the ascending trendline connecting previous highs. RSI on the weekly time frame is getting back into overbought levels not seen the all-time highs back in November of 2021. If this index is to continue higher, a logical target is the top of the Fair Value Gap, around $358.07.
This week, the IWM ETF closed at $176.15 (+0.02%), finding support at the bottom of the ascending triangle but closing red and flat on the week. Though it’s drastically lagging behind its counterparts, some small signs of strength can be seen in the price managing to trade above the aVWAP from January 2023 highs, as well as a higher low being put in on the weekly time frame. If this index is to continue higher next week, some logical targets are the two unfilled gaps above, pictured on the daily chart.
The weekly market update is written by Jason Krutzky, host of TrendSpider TV.
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