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05/22/2021 |

Market Update Into 5/24: $BTC Selloff Spooks the Equity Markets With What’s 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.

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). Set A Reminder and Tune In Here

Stock Trading Pit, Episode: 02 on Sunday, 05/23/2021, at 8 PM EST.


Weekly Analysis

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.

$SPY session and weekly charts.

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.

$QQQ session and weekly charts.

The $IWM.

$IWM session and weekly charts.


Top 5 TrendSpider Posts This Week

$PLTR chart by @JollibeeTrades on Twitter.

$TELUSDT chart by @GThompson_SMG on Twitter.

$TWTR chart by @CaptainKappy on Twitter.

$NTES chart by @Sniperalertss on Twitter.

$ETHCAD chart by @Haddie168 on Twitter.