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05/22/2021 |

Weekend Update Into May 24th – $BTC Selloff Spooks The Equity Markets With Whats To Come With Inflation

The Bitcoin ($BTC) sell-off last week sent shock waves throughout the cryptocurrency markets with some traders washing up on the shores of the traditional equity markets looking for a safe haven. Friday’s close was pretty quiet after a week of choppy price action. The Dow inched up into positive territory and the NASDAQ slightly lower due to cryptocurrency woes. ETFs were a mixed bag; as economic data is still being digested for insights into the Fed’s next move. The key factor which seems to have markets stalled is inflation worries, but should it be? Does the Fed really want to send the market in a tailspin with a rate hike? Is wage inflation the real worry for investors in the know? Is inflation a better alternative to higher taxation to offset unprecedented stimulus and infrastructure spending? So many questions which will be looking for resolution as we move closer to Q2.

The $SPY closed at $415.42 (0.03%) a modest gain after a very choppy week. Taking a look at the daily chart using TrendSpider RainDrop Charts (R), we can see selling volume building in the latter part of the session. The weekly chart looks as if the rejection at the 2.618 fib intends to continue into next week.

The QQQ ended Friday at $327.07 (-0.54%), slumping on panic in the cryptocurrency markets. The daily chart shows price struggling to break above a high liquidity zone on the TrendSpider Volume Shelf; yet, optimistically holding above the current trend line on the weekly. 

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 2 of the “Stock Trading Pit” begins this Sunday at 8 PM (EST) with special guests, Brian Shannon (CMT), creator of the Anchored VWAP, and Sara Strat pro trader of  The Strat Method (created by Rob Smith).

Check out the “Stock Trading Pit Show” Season 4, Episode 2 with Brian Shannon and Sara Strat on Sunday at 8 PM (EST)!

Set A Reminder and Tune In Here

SPY: Session / Weekly

QQQ: Session / Weekly

IWM: Session / Monthly

Top 5 TrendSpider Posts This Week



Related Blog Posts

Check out our supplemental blog posts below:

  1. Alerts – Add alerts to your trendlines and indicators with sensitivity.
  2. Raindrops – Visualize volume and price action in a completely new way by visualizing volume flow throughout a specific time period.
  3. Conditional Criteria Alerts – Create complex conditions to be met between a mix of lower indicators and price action.
  4. Multi-time frame analysis (MTFA) – Overlay your chart a secondary timeframe with on trendlines, indicators, and Fibonacci levels.
  5. Trendline Preferences – Customize your trendlines to automate a consistent trendline drawing strategy.
  6. Add Watchlist – Create your own watchlist and quickly move through charts with automatic analysis on each!
  7. Automatic Candlestick Recognition – Automatically input your favorite candlestick patterns into the system and have TrendSpider find all the ones on your current chart!