A quick (10 min) wrap of the price action in the US stock market over the last week along with some key technical levels to watch for next week & some unusual late-day market action that could be a harbinger of a sell-off next week.
The charts below help to illustrate that, at least as this point, the recent rallies in the major US stock indices have so far been nothing more than typical oversold, counter-trend bounces off support with every major US stock index still well within the typical Fibonacci retracement levels. All major indices, other than the Nasdaq [...]
QQQ broke down below the bear flag continuation pattern yesterday shortly below the close. Pre-market trading currently indicates a gap up that would backtest the flag from below so on watch for any failure there followed by an impulsive move lower, especially below the 129.75 support level. That bear flag was previous highlighted on the [...]
The bounce resulting from the bullish divergences highlighted yesterday continue play out so far today with SPY now at dual resistance: The 50% Fib retracement from the most recent plunge (yellow lines) as well as this previous reaction high. Note that the 38.2% retracement of the move down off the March 15th highs, which could [...]
Another failure (so far) at the attempt to print a closing candle above the 38.2% Fib retracement of yesterday's drop in QQQ signals that this likely dead cat bounce may have run its course. 5-minute chart: QQQ 5-min 2 March 22nd Zooming out to the 60-minute time frame, QQQ looks ripe for a [...]