Combined with the Fed’s announcement that two interest rate increases are to be expected by late 2022, most stocks and benchmark ETFs closed in the red on the expiration of single-stock options, stock-index futures, stock-index options, single-stock futures on Friday. To add insult to injury, the flattening of U.S. Treasury interest rates drove the rebounding financial sector lower, signaling to investors that the Fed might be tightening its monetary policies sooner than expected.
The $SPY closed Friday at $415.25 (-0.52%). On the daily chart, price appears to be working its way lower toward the AnchoredVWAP from March’s lows. On the weekly chart, we have an unfilled gap revealed by TrendSpider’s Gap Snake which appears to be where price is heading.
The $QQQ ended the week at $342.62 (-0.29%). Having a look at the Daily Raindrop Chart ® price closed above the upper trend line of a broadening wedge to fail and close lower on Friday. On the weekly chart, things seem a bit more optimistic with price closing right at the upper trend line of an ascending triangle pattern.
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