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05/06/2022 |

Market Update Into 5/9: Broadening Formations Abound

The market continued its slide this week as all the major indices put in fresh new lows. It’s hard to be bullish in these conditions, but a glimmer of hope lies in the fact that many names are getting into oversold territory and could be due for a relief bounce in the coming weeks. When exactly that bounce comes is anyone’s guess, so we must stay vigilant and be prepared for all scenarios. We’ll dig into the individual names below, but first, a word from Jake.

Weekend Update

TrendSpider Weekend Update Into The Second Week of May 2022

Weekly Analysis

This week, the $SPY ETF closed at $411.38 (-.15%), taking out last week’s low and going outside (3) on the week. An outside pattern is one that takes out the high and low of the previous candle. According to The Strat philosophy, because of the outside pattern on the weekly, it’s best to wait here and see what next week’s candle brings before deciding to go long or short.

$SPY weekly and monthly charts.

This week, the $QQQ ETF closed at $309.38 (-1.24%), and much like the $SPY, went outside (3) for the week. On the monthly, we see price failing at the pivotal aVWAP from the Covid low. That said, it’s still early in the month and there is time for price to regain that level, but it is a warning shot. In addition, we also see RSI failing below the pivotal 50 level.

$QQQ weekly and monthly charts.

This week, the $IWM ETF closed at $182.60 (-1.27%). Much like the other names, we see a broadening formation on the weekly and fresh new lows. There is an unfilled gap below that seems likely to be filled in the no-so-distant future. Much like the $QQQ, this name is currently failing below its aVWAP from the Covid low.

$IWM weekly and monthly charts.

Top Twitter Posts This Week

$AAPL chart by @KessInvesting on Twitter.
$QQQ chart by @ThePupOfWallSt on Twitter.

$AMZN chart by @magicmiketrader on Twitter.