Stock yielded to the red after a 3-week winning streak, pulling all major indexes into negative territory. After positive retail sales numbers rolled in on Friday, the University of Michigan’s index of consumer sentiment (which strips out inflation) revealed that consumers are worried about future prospects and tighten the belt with a 4.7 point drop; which was 1.4 points lower than economists expectations and the lowest since February.
In this blog post, make sure to check out the top 3 TrendSpider charts posted this week on social media; as well as the broad market charts into next week!
The $SPY closed at $431.39 (-1.05%) on Friday. Price has broken the lower trendline of a rising wedge on the daily candlestick chart; an ominous sign indeed. On the weekly, things look less grim with price appearing to head for a retest of a liquidity zone on the volume shelf, which hopes are on it holding and serving as a launchpad for a retest (or breakout) of the upper trendline.
The $QQQ closed at $357.59 (-1.07%) on Friday. On the daily chart, we see similar price action as the $SPY with price piercing a lower trendline of an ascending wedge; with an Anchored VWAP from May’s lows leaving a question on the chart. The weekly candlestick chart’s price action was rejected at the 1.618 fib extension; an expectation that proceeds many questions into the week to come.