IWM needs to catch up
QQQ, SPY, DIA in uptrend.. IWM trying to close above the 10d
This week we have the QQQ, SPY and DIA all in uptrend. The IWM, which has been lagging this year so far, is opening above the 10d with MACD curling up. So, while IWM needs MACD confirmation — this is very positive. An IWM that catches up to the market will help propel it vs. an IWM that is leading us negative. We need IWM to catch up to the rest of the market — not the rest of the market catching up to IWM.
Let’s see how it holds this week. Let’s look at QQQ, SPY, DIA, IWM and Bitcoin
You can also view my video from this morning here:
QQQ
Day 8 of an uptrend on QQQ and this double top just leaps out at you. Certainly resistance at this area and we will have to see how it handles this spot - could be a double top and we head lower.. could form a handle for the cup.. could blow through it. The conservative approach would be to treat this spot as resistance and sell calls against longs above last week’s highs.
However, it is not doing anything wrong and the market looks pretty strong. A weak close may change things, but in uptrend don’t call tops. Let’s see what price does the next couple of days.
SPY
Also in uptrend, but a bit more chop recently. Nice open today and officiall is in day 4 of uptrend.. Could take a similar approach to QQQ - sell calls against longs at 405ish, but overall it is in uptrend so no need to call a top.
DIA
Also Day 4 of uptrend and looks very similar to SPY. Let it do its thing and we will watch the close for next couple of days for clues.
IWM
IWM has been in downtrend since Feb. 9th and has spent 30 days below the 10d. It has opened this morning above the 10d with MACD curling up which is a great sign for the market. Let’s see if it can confirm the uptrend in the next couple of days.
I expect it to be a bit choppy but it is great news to see it firm up. We need it to hold in order for the rest of the market to hold up..
BITCOIN
Has been in a nice uptrend and a recent consolidation phase but is currently trading below the 10d with a flattening/declining MACD. Really needs to show some strength to avoid entering a downtrend.
