The week started out with a bang, clocking the highest daily volume in the indices since the March 2020 lows. During the rest of the week, however, a battle raged between bulls and bears vying for control of the tape. At the close, what we have is an encouraging, yet indecisive weekly candle. Is this the beginning of a reversal or will the bears take back control next week?
This week, the $SPY ETF closed at $441.92 (+0.90%), making it the strongest of the major indices. Support was found at the rising trend line from the June 2020 low and oversold readings on the weekly time frame paired with huge volume suggests that we might be seeing the beginnings of a reversal in this index. All eyes will be watching to see if price can overtake the pivotal 200-day SMA above.
This week the $QQQ ETF closed at $351.98 (+0.07%), just barely above last week’s low and beginning to show signs of a possible reversal. The weekly candle is constructive, but we’re not out of the woods yet with both the 200 day SMA and the AVWAP from ATH’s looming above. Support was found at the rising trend line from the June 2020 lows.
This week the $IWM ETF closed at $195.22 (-0.09%), and it continues to be the weakest of the main indices. Still trading well below its 200-day SMA and the AVWAP from ATH, but oversold on the daily and weekly time frames and finding some support at the rising trend line from June 2020 lows.
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