That old adage, “Hope for the best, but prepare for the worst”, must have been hanging on the walls of most Wall St. analysts at the end of 2020; as their conservative estimates were seen biting the dust on Friday with positive earning reports rolling in one after the other. The macro-environment is showing positive numbers across the board with most stocks closing in the green. Banking, retail, and employment data point to a rebounding economy. However, some are worried that the economy might be burning from both ends and overheating too quickly; leading to calls for caution. With that being said, TrendSpider’s Chief Market Analyst, Jake Wujastyk, weekly index/ETF charts might shed some light on these calls for caution in the stock market.
In this blog post, make sure to check out the top 5 TrendSpider charts posted this week on social media; as well as the broad market charts into next week! If you missed Season 3 of The Stock Trading Pit, catch the recaps of every episode on our YouTube Channel.
On Friday, the $SPY ended the session at $416.75 (+0.21%) on strong momentum into the next trading week. The weekly chart shows price piercing the upper range of the Bollinger Bands® which might be a sign of a pending retracement to come.
The $QQQ closed Friday at $341.74 (+0.04%), with some selling pressure seen in the afternoon session. The Q’s price is also flirting with the upper range of the Bollinger Bands® behind the $SPY, but no break of the outer band as of yet.