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QQQ, SPY & IWM Analysis

Here's an overview of the major US stock index tracking ETFs as we head into the final half-hour of trading (all shown on the 60-minute time frames).

SPY (S&P 500 Tracking ETF) is challenging the previous (early Dec) highs, with most previous reaction highs often acting as resistance. Should SPY take out those highs by less than a percent or so then moving back down below, that will have put in a very large & powerful divergence in addition to a failed breakout (both bearish).

SPY 60-min Dec 24th

SPY 60-min Dec 24th

Following this very brief whipsaw breakdown below the minor uptrend line, QQQ reversed to make a marginal new, yet still divergent high. Still awaiting confirmation of the bearish divergences via a bearish crossover on the PPO as well as the 13/33-ema histogram (a trend indicator, bullish when green/above zero, bearish when red/below).

QQQ 60-min Dec 24th

QQQ 60-min Dec 24th

Although I don't expect IWM to take out the early Dec highs, if they manage to, just as with SPY & QQQ, it would most likely do so putting large negative divergences in place (dotted lines on indicators & price above).

IWM 60-min Jan 24th

IWM 60-min Jan 24th

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Jan 24, 2017 3:39pm|Categories: Equity Market Analysis|Tags: , , , , , |2 Comments

2 Comments

  1. lee1 January 24, 2017 3:45 pm at 3:45 pm

    This answers my question. Thanks

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    • rsotc January 24, 2017 3:54 pm at 3:54 pm

      Thanks Lee, I started looking at the charts & thinking about my recent analysis, which as been on the light side, & figured that you were probably referring to the new high in QQQ today although SPY, MDY, IWM & even DIA (which I hardly follow as it is not a very diversified index) have all failed to confirm the new highs in the QQQ so far. At this point, I would put it at about coin-toss odds whether any or all of those indices take out & close above the Dec highs before a meaningful reversal.

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