Quote of the week
"When I thought I couldn't go on, I forced myself to keep going. My success is bases on persistence, not luck". Estee Lauder
MARKET OVERVIEW
Traders and investors sat on their hands awaiting Fed Chairman's statement on Tuesday and Wednesday. The Fed sees the economy and employment improving and this does have them thinking of rising rates. After a ranging on Monday, market broke out on Tuesday and Wednesday hitting new highs for the week. The trend continued and $DJI broke to a new high. The last two trading days of the week brought in a a lot of indecision thus major market induces are basing bullishly at the highs. Oil (/CL) back down to support trading under $50.00 .
Next week's trades will be contingent on what the market will be doing. We will still keep a long bias but in a correction we will be ready to tighten stops and even look at some lagers for some short positions.
TECHNICAL LEVELS AND ANALYSIS OF MAJOR MARKET INDICES
QQQ: Maintained a bullish behavior all through out the week, continuing to set new highs. QQQ's finished the week with a high at $108.94.
If next week QQQ will violate $108.00 area (marked with "2" on the chart) we might expect a correction into $106.00 area of support (marked with "1" on the chart) derived from a previous swing high from 11/28.
- Bias: Bullish
- Support Levels: $106.25, $105.35, $104.60, $102.50, $100.00
- Resistance: $109.77 and void into $120.00
Daily Chart of QQQ below represents the ETF's trading activity until Friday's close:
SPY: SPY's are in a slight correction on the daily chart for the last three days since a daily sell set-up formed and triggered in Thursday. Even though it triggered it is still maintaining it's bullish trend on all time frames. Hourly chart is still very bullish and very much aligned for a possible breakout over $211.50 level. If next week sellers start to appear SPY can test the next level of support at $209.00 (number "2" on the chart) derived from a previous high from 12/29 (number "1" on chart). A test of this area on relative weakness opens the doors for a steep correction into major support (marked with "3" on the chart) at $198.00 level.
- Bias: Bullish
- Support: $209.00, $206.67, $204.00, $198.00
- Resistance: $215.00
Daily Chart of SPY below represents the ETF's trading activity until Friday's close:
MAJOR EARNINGS FOR THE UPCOMING WEEK
Monday:
ARNA ENDP SSYS
Tuesday:
BBY CECO
Wednesday:
ANF NAV PETM W
Thursday:
CIEN COST CSIQ DMND JOY KR
Friday
BIG FL SPLS
MAJOR ECONOMIC RELEASES FOR THE UPCOMING WEEK
Monday
8:30 am Core PCE Price Index
8:30 am Personal Spending
10:00 am ISM Manufacturing PMI
Tuesday
-
Wednesday
8:15 AM ADP Non-Farm Employment Change
10:00 AM ISM Non Manufacturing PMI
10:30 AM Crude Oil Inventories
Thursday
8:30 am Unemployment Claims
10:00 AM Factory Orders
Friday
8:30 an Non Farm Employment Change
8:30 am Trade Balance
8:30 am Unemployment Rate
Have a fantastic week,
Anka Metcalf