Bears are more than puzzled and sent back into temporary hibernation after the Dow closed above $35,000 for the first time on Friday. The week opened with a sharp sell-off on lower 10-year yield treasury bonds hinting at bad news inbound from the Fed’s meeting on July 27th. However, the S&P 500 held above the 50-day moving average to ignite the markets on Friday.
The $SPY closed out the week at $439.90 (+0.54%). On the daily chart, price has absorbed supply on the volume shelf and is making a move toward testing the upper trend line from May. We see a similar tale on the weekly chart, with price nearing long-term resistance that has been in place since March.
$QQQ closed Friday at $368.08 (+0.76%). On the daily chart, price has lifted off from the highest volume nodes and headed for a test of the upper trendline with vigor. On the weekly, price has claimed the 1.618 fib with a strong close end of day.