Hi everyone! It’s been a while…
Disclaimer:
The information and materials provided here, whether or not provided on TBI’s Substack (TBI), on third party websites, in marketing materials, newsletters or any form of publication are provided for general information and circulation only.
None of the information contained here constitutes an offer (or solicitation of an offer) to buy or sell any currency, product or financial instrument, to make any investment, or to participate in any particular trading strategy.
TBI does not take into account of your personal investment objectives, specific investment goals, specific needs or financial situation and makes no representation and assumes no liability to the accuracy or completeness of the information provided here. The information and publications are not intended to be and do not constitute financial advice, investment advice, trading advice or any other advice or recommendation of any sort offered or endorsed by TBI. TBI also does not warrant that such information and publications are accurate, up to date or applicable to the circumstances of any particular case. Any expression of opinion (which may be subject to change without notice) is personal to TBI and TBI makes no guarantee of any sort regarding accuracy or completeness of any information or analysis supplied. TBI is not responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained here. The contents of these publications should not be construed as an express or implied promise, guarantee or implication by TBI that you will profit or that losses in connection therewith can or will be limited, from reliance on any information set out here.
Today’s newsletter centers around the main market indices, and is a continuation from Part 3:
SPDR Dow Jones Industry Average ETF (NYSEARCA: DIA)
DIA was trading below its downtrend resistance trendline (in pink) for the past few months. However, in recent sessions, it’s managed to break above the trendline and is now heading towards the monthly imbalance at 423.65-431.02, where I’m expecting a rejection and pullback. The weekly stochastic also formed a bullish crossover this week - despite the past few bullish crossovers being false signals, the trend breakout we are seeing here could see further upside.
Invesco QQQ Trust, Series 1 (NASDAQ: QQQ)
Likewise, QQQ broke out of its resistance trendline (in blue) and moved into the monthly imbalance at 479.56-496.93. I’m watching the imbalance fill for a pullback, with further extension towards the 513.04-525.71 weekly imbalance another possibility. The weekly stochastic formed a bullish crossover 2 weeks ago, suggesting further upside is possible from current levels. Similar to DIA, the previous few weekly crossovers were false signals, however, the trend change might be the key to a new leg higher.
SPDR S&P 500 ETF Trust (ARCA: SPY)
As for SPY, it’s currently trading in a tight rising wedge after breaking out of its resistance trendline (in blue). It’s now retesting the support trendline (in purple) from below. I’m watching the 567.42-582.44 monthly imbalance to the upside - it was strong support previously. The weekly stochastic formed a bullish crossover 2 weeks ago, while the daily stochastic appears overbought. While a near-term pullback is possible, SPY should continue to drift higher for the next few weeks or so. A breakdown here can see a move back down the range into the 510s - I have mentioned in previous articles that I expect the indices to make lower highs before forming lower lows.
iShares Russell 2000 ETF (NYSEARCA: IWM)
IWM closed right at the short-term resistance trendline (in pink), and is approaching the monthly imbalance at 203.33-210.90. A breakout above this resistance trendline should result in a retest of the main resistance trendline (in blue), and 210.90 being retested. The weekly stochastic formed a bullish crossover 2 weeks ago, although the daily stochastic formed a bearish crossover just a few days ago. Could this be a case of a near-term pullback before a much bigger move to the upside?
From the 4 tickers I’ve shared above, it’s apparent that all of them have broken out of their resistance trendlines, however, some of them have older and stronger resistance trendlines. Should the laggards (IWM, DIA) break their older resistance trendlines, it could result in a large gamma squeeze.
For much of this current move from lows, retail has driven the rally, as they supported the market with significant inflows. What happens when institutions get involved? Well… we’ll find out!
$SPDR Dow Jones Industrial Average ETF Trust(DIA)$ $iShares Russell 2000 ETF(IWM)$ $SPDR S&P 500 ETF Trust(SPY)$ $Invesco QQQ(QQQ)$ $Berkshire Hathaway(BRK.B)$
@TigerWire @TigerStars @CaptainTiger @MillionaireTiger @TigerEvents
Comments