Market Update Into 3/7: A Choppy Week in the Markets
Another difficult week for the markets is in the books, and it feels we are no further along than we were last week. Though the major indices were able to break out of their tight ranges on Thursday, any hope for a continuation higher was dashed as they all sold off and ended the week sharply lower. The head and shoulders patterns highlighted in previous weekend updates seem to be playing out as expected, and now we’re seeing price getting stuck below the neckline area. All eyes will remain on the conflict between Russia and Ukraine this weekend, as it will inform how the markets behave next week.
This week, the $SPY ETF closed at $432.22 (-1.26%). The head and shoulders pattern noted in previous weeks continues to play out, but the price did manage to close just above the neckline area. Of note, also, is the bearish MACD cross that continues to play out on the monthly time frame.
This week the $QQQ ETF closed at $337.38 (-2.43%), making it the weakest performer of the major indices for another week. Just like $SPY, the head and shoulders pattern continues to play out here, but price was unable to retake the neckline area this week. Additionally, one cannot deny the bearish MACD cross that’s occurring on the monthly time frame.
This week the $IWM ETF closed at $198.74 (-1.86%). The potential double bottom that was put in last week did hold this week, and now we look to the AVWAP from ATHs, as it’s coming right into the zone of previous support. If price is able to continue higher, expect it to find resistance there. Of note, as well, is the bearish MACD cross on the monthly time frame that continues to play out.