10/28/2022 |
Market Update Into October 31st: Markets Rally On Bad News
They say that it’s worth noting when markets rally on bad news. Well, that’s just what we got all week this week. With poor earnings from AMZN, MSFT, and others, only a minimally cooler-than-expected PCE number, and a lower-than-expected jobless claims number, it would have been easy to expect markets to continue their downward tumble. That’s not what happened, though! In the face of all of this news, markets gained. We now find ourselves with a second week in a row of strength across indices, and subsequently, we’re looking for areas on the chart where price might stall. In addition, not only do we have another Fed meeting next week, but also midterm elections on November 8th. These two events could prove very important to the markets’ direction in the coming weeks! We’ll provide a brief update on the current state of the charts below!
Weekly Analysis
This week, the SPY ETF closed at $389.04 (+3.96%), pausing right at the 50% Fibonacci retrace from the local high to low. Above lies the .618 retrace at $399 and the aVWAP from the all-time high, at $413. These two levels could prove to be important in the weeks to come.
This week, the QQQ ETF closed at $281.22 (+2.11%). With the poor earnings from some of this index’s most important names, it’s not a surprise to see it lagging behind its peers. Above the current price lies the 50% Fibonacci retrace from the local high to low, as well as the volume point of control from the all-time high at $294. This should prove to be a key price level for this index.
This week, the IWM ETF closed at $183.16 (+6.06%), continuing its leadership role against the other indices. This index managed to gain and close above the 50% Fibonacci retrace from the local high to low, and we now look to the volume point of control and the aVWAP from the all-time high as potential areas where price might stall.
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