Major market indices rallied on Friday to post impressive gains, yet still suffering their biggest weekly losses since February. Friday’s gains were spread across various sectors; with Apple and Tesla for the win in Tech and Carnaval and American Airlines signaling that the U.S. economy is open for business again. Last week was a whipsaw of price action, leading many to believe that the gains posted were more due to the presence of traders rather than the sentiments of long-term investors shaking off inflation worries.
If we have a look at the University of Michigan’s Consumer Sentiment Report (released after market close), consumer sentiment is down by 5.5 points from May’s 88.3; a disappointment to Wall St., which forecasted a rise to 90.1. Therefore, next week stands to be a pivotal point where the market either continues on the optimism of a supercharged spending spree upon the opening of the U.S. economy or succumbs to the inevitability of inflation.
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The $SPY closed Friday at $417.44 (+1.75%) stemming the sell-off from earlier in the week. The session chart finds price working its way through the highest liquidity zones since March’s low. However, the weekly confirms a price rejection at a confluence zone between the upper trend line and the 2.618 fib level.
The $QQQ ended Friday’s session at $327.65 (+2.60%) on impressive earnings reports from major tech companies like Tesla and Apple. On the session chart, price is bouncing off of high liquidity nodes from March lows and the weekly chart records 4 red weeks in a row; in line with TrendSpider’s Seasonality Widget’s win rate of 0% this month.