Market Update Into August 21st: Three Weeks Red
It was another brutal week for the bulls, with powerful selloffs across each of the three major indices. The small caps bore the brunt of the downside move, but few stocks were safe from the renewed fears of higher rates for longer, office real estate tanking, and fed liquidity drying up. Friday closed with bullish candles on all three major indices, but next week is the all-important Fed meeting at Jackson Hole, and traders will surely be keeping a close ear to J. Pow’s sage words. Let’s dig into the individual names below and see how the charts are looking!
Weekly Analysis
This week, the SPY ETF closed at $436.50 (-2.06%), marking its third red week in a row, a condition not seen since February of 2023. This index found support at the aVWAP from the April pivot lows, but if the price continues lower in the weeks to come, traders will want to keep an eye on the low-volume nodes from $420-$425. The imminent MACD cross-down is certainly a concerning look for the bulls.
This week, the QQQ ETF closed at $358.13 (-2.21%), marking its third red week in a row, a condition not seen since December of 2022. The MACD cross-down is certainly a concerning look, but for now, this index found support at the aVWAP from the April pivot low. It does, however, contain several low-volume nodes just below that could act as a magnet for the price if the selling continues in the coming weeks.
This week, the IWM ETF closed at $184.65 (-3.32%), making it the weakest performer of the group. That said, it did find near-perfect support within the low volume nodes at the aVWAP from the March low and bulls will want to see this area hold in the weeks to come.
