Market Update Into 6/1: $SPY / $QQQ Close Near All-Time Highs on High Hopes That Inflation Can Be Tamed
Memorial Day is a time to pay homage to the fallen who fought under the most extreme circumstances and adversity to achieve victory in the face of insurmountable odds, and Friday’s market close appears to have paid its respects to this spirit of determination as well, after weeks of mixed data and uncertainty. Salute!
Friday closes out the month of May with more positive signs that the market recovery is firmly underway; with numbers from Thursday’s unemployment report coming in closer to pre-pandemic levels and an increase in inflation, tame (within analyst predictions). Wall St. recognizes that the greater macro-economic environment is less than perfect, yet moving cautiously forward with momentum on the hope that the Biden administration’s $6 trillion-dollar proposed spending package will provide economic stability in the event of an interest rate hike or weakening job market which are still looming overhead.
In this blog post, make sure to check out the top 5 TrendSpider charts posted this week on social media; as well as the broad market charts into next week!
Don’t forget Season 4, Episode 3 of the “Stock Trading Pit” on Sunday (6/6) at 8 PM (EST) with special guests, Joe Kunkle (OptionsHawk) and Tanner from ChartingOptions.
Set A Reminder and Tune In Here
The $SPY ended Friday’s session at $420.03 (+0.18%). On the daily candlestick chart, TrendSpider’s Relative Volume Indicator (RVOL) illustrates that recent price gains were achieved on below-average volume and may be a caution to heed. On the monthly, price has broken out from the upper trend line and is holding above the retest of the breakout from last week, painting a more optimistic picture into the week ahead.
The $QQQ closed at $333.80 (+0.28%), nearing all-time highs. On the Daily Raindrop ® Chart, which visualizes actual volume in the candlestick, price action is holding in the middle of a broadening wedge pattern, signaling there are still polarizing opinions on price direction. Taking a look at the monthly, price is still struggling to pierce the upper-trendline; combine this with the last two red closes on the daily chart, bets are potentially leaning toward some downward price action in the near term.