08/21/2021 |
Market Update Into 8/23: Stock Indexes Rebound Higher on Friday to Close Out a Red Week
Major U.S. stock indices closed out in the green on Friday, yet down from the previous week’s close on ever persisting COVID variant fears and looming economic intervention from the Fed. The Dow gained 225.96 points, the S$P 0.08%, and the NASDAQ finished 1.2%; all higher on Friday, but failing to close above the previous week. The tech sector traded in the green across the board, with the NASDAQ offering the most promise into the week to come. Investors took advantage of last week’s pull-back to add to their tech portfolios, betting on possible COVID restrictions playing out as they did in early 2020.
Weekly Analysis
The $SPY finished the week at $443.36 (-0.27%) and holding well above the highest liquidity node on the volume shelf after a test of the Anchored VWAP from July’s lows. On the weekly chart, the RSI is printing bearish divergence, as price moves higher in an ascending wedge formation.
The $QQQ closed Friday at $367.73 (+0.02%). After testing the lower trendline of an ascending triangle on Thursday, price looks ready to have a go at the all-time high, nearing the upper trendline. On the weekly chart, the RSI is printing bearish divergence, as price tries to hold above the 1.618 fib.
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