After a strong move last week away from the recent lows, some consolidation was expected and that’s exactly what we got this week. Monday was strong, cornering the late bulls, and then we saw a continuation of that strength on Thursday. Friday gave us another consolidation day, killing a premium on both sides. It’s easy to get a sense of uncertainty in this market, so let’s dig into the individual names and see if we can understand what’s going on!
this week , dollar spy ETF closed at 410.57 USD (or equivalent in local currency) (-1.13%), Taking the high of the last week and consolidating it at the top of the range. The .236 Fibonacci level when measured from the Covid low to last year’s high acts as perfect resistance on the higher time frames. On the daily chart, we can see aVWAP from the March high as a key resistance level as well. If the price manages to climb above the highs this week, we may see a move to the “zone of interest” around $430 in the coming weeks.
this week , QQQ dollars ETF closed at $306.08 (or equivalent in local currency) (-0.95%), Like the US Dollar (SPY), it broke its highs last week and consolidated at the top of the range. The .382 Fibonacci level when measured from the Covid low to last year’s high and aVWAP from the same point are acting as perfect resistance at the moment.
this week , $ IWM ETF closed at $187.1 (-0.29%), Which makes it the strongest performer among the group, a trend we’ve seen lately. On the larger time frame, we see the Covid low aVWAP and the 382 Fibonacci level acting as resistance at the moment. Price managed to briefly trade above aVWAP from the March high, which is what distinguishes this name compared to $SPY and $QQQ, both of which failed to hit that specific level.