Week 28 Markets Review
All the major markets were up last week and improved upon their trending. The Russell 2000 (IWM) had the biggest gain of +3.69% with the NASDAQ 100 (QQQ) continuing its momentum gaining +3.50%.
Many of the ETFs have extended RSI levels and also have unfilled gaps below. So, I would not take new long positions here. I want to see what happens the next few trading days to confirm that the bull run is going to continue.
Major Markets Trending
Very rare to get a picture-perfect situation like the above. But we do have it this week.
The SPY has broken through a resistance level and is currently at a 1-year high. The next resistance is at around the 460 level with price currently hovering around the 450 level. The support is around the 443 level where also there is an unfilled gap (442.97). The MACD histogram turned back to positive so there is every reason to think that price keeps going higher for now.
The QQQ is back on a strong bull run and took out the 370 level which had been a resistance for a while now. In its move up though, the price (379.07) did create 2 gaps below at 374.19 and at 368.63. The RSI is at 71 and we have seen it rise to around 78 over the last 3 months. The MACD histogram has turned positive again. So, there is room to run. The next resistance is around the 408 level and the 370 level now is support.
The IWM was able to break out of its resistance around the 188 level. Now that level becomes support. The next resistance is at around the 199 level. There remains an unfilled gap below at 190.10 with price closing at 191.53 on Friday. The MACD histogram is positive, and the RSI is at around 61. So, there is room to run.
SPX Sectors Trending
Alternate Sectors Notes
The precious metals and related are looking somewhat bullish. The GDX, GDXJ and GLD turned bullish although they do have unfilled gaps below.
The KRE has turned bullish but did have a big down day Friday. It also has an unfilled gap below from 3 trading days back.
KWEB spiked up over the week and turned bullish. But this one also has unfilled gap below.