This week started with lower gaps in all three major indices. Although the price tried to rally until Thursday, it seemed to act as a fake long-handling pump as Jerome Powell’s comments on Friday sent the markets sharply lower. Now, we find ourselves breaking lower or swinging on the edge of previous resistance-turned-support areas. The bulls may be clinging to the hope that the mentioned areas will turn around and become real support but it is not looking good at this time. The 2u-2d weekly reversal patterns give additional weight to the possibility of more downside action from here. Let’s take a look at the individual names below.
Weekly Analysis
this week , dollar spy ETF closed in 405.31 USD (or equivalent in local currency) (-3.99%), It failed below the “potential support area” we highlighted last week, as well as aVWAP from the “near-term” low. Bulls will want to see price find support near the pivot low (yellow line) in the upcoming sessions.
this week , QQQ dollars ETF closed in $307.44 (or equivalent in local currency) (–4.80%). Price has now broken below the ‘potential support area’ as well as aVWAP from the ‘near term’ low. We are now looking at our nearest pivotal low, around $297, to enter and provide some support in the upcoming sessions.
this week , $ IWM ETF closed in $188.98 (or equivalent in local currency) (-3.07%), Just inside the “potential support zone” that we highlighted last week. As this is the strongest indicator of the group, we are looking for this area to continue, but if it does not, aVWAP may trigger off from a near-term low in the upcoming sessions.
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