As we expected last week, the bearish momentum continued across all markets this week. New relative lows are recorded in SPY and QQQ, with a bright spot in IWM. There are some obvious inverse head and shoulders patterns that can be considered constructive. However, more often than not, markets do not move as easily as traders expect so it is worth noting some important levels of interest below as price could easily find itself at those levels in the coming weeks. Details on individual pointers after the jump, but first, an update from Jake!
this week , dollar spy ETF closed at 437.86 USD (or equivalent in local currency) (-2.17%). Early in the week, the price failed and then was rejected by aVWAP from the recent highs. This is a lost pivot level, and the bulls will want to see this restored sooner rather than later. It is also worth noting that the RSI is losing the 50 pivot level on the weekly time frame. We have included sThere are lower levels of interest on the chart below. Also note that the GoNoGo indicator is blinking a “Neutral” signal on the daily time frame.
this week , QQQ dollars ETF closed at $338.43 (-3.07%), Which makes it the weakest performance among the three indicators. Much like the US dollar, this indicator managed to break last week’s lows which indicates the potential for the downtrend to continue. Also, the RSI is steadily below the 50 level on the weekly time frame. Some of the lower levels of interest can be seen on the chart below. Note that the GoNoGo indicator is moving from a “neutral” signal to a “weak stop” signal on the daily time frame.
this week , $ IWM ETF closed at USD 198.93 (+0.54), This makes it the strongest performer among the three major indicators. Resistance was found at aVWAP from the January high, but the bright spot is that the weekly candlestick closed higher than last week’s low, a fundamental difference compared to its peers. We can also see the GoNoGo indicator moving from a “weak do not go” signal to a “neutral” signal on the daily time frame.