01/21/2022 |
Market Update Into 1/28: The Cascade Continues
The cascade continues this week as BTFD’ers get steam-rolled at every turn. With all major indices closing at or near lows for the week, it certainly leaves the feeling that buyers have all but completely dried up and are now hibernating for what could be a long winter. With many pivotal ‘lines of last resort’ breaking down, we can’t help but fear more weakness in the weeks to come.
Weekly Analysis
This week, the $SPY ETF closed at $438.05 (-5.76%), just below the pivotal 200-day moving average. With oversold RSI readings on both the daily and weekly time frames, we see the 50-week moving average as a possible next level of support for this beaten down index.
This week the $QQQ ETF closed at $351.41 (-7.53%), well below the highly watched 200-day and 50-week moving averages and oversold on the daily and weekly time frames. A possible next line of defense is the Volume By Price VWAP measured from September 2020 lows.
This week the $IWM ETF closed at $197.03 (-8.06%), in a move that cements this index as the weakest of the bunch. Now trading well below its 200-Day and 50-Week moving averages, oversold on daily and weekly time frames, with lots of overhead supply at the PoC from the September 2020 low.
Top Twitter Posts This Week
