📈What Happened In Stocks in 20 Charts
SP500 broke out of its range to new year to date highs followed by the Nasdaq making a new year to date high. Not to be out done the Russell 2000 lifted over the 200 SMA weekly for the first time since February. Most analysts continue to be bearish saying inflation is not in check. While this is true the primary driver of any market is earnings and we were expecting the worst. The SP500 was expecting a 7% decline in last quarters earnings. Instead it came in at a 2% decline. Technology stocks on the whole were 6% higher on the quarter. Earnings are not as bad as expected. Inflation while an issue is dropping and the labor market is still robust. A strong labor market is not a bad thing. While this may keep CPI and PCE higher for longer it does mean people have a job and are able to spent money. This is bullish for a consumer economy which the U.S. clearly has. Charts do a great job of telling us what is happening versus us reading economic data and telling the market what it should do. Let’s get to it!
SP500 (SPY) - New 52 week high close out of a year base.
Nasdaq (QQQ) Monthly with RSI shows plenty of room to run.
Russell 2000 (IWM) holding the $170 support. RSI looks solid and DTL flipping
Nasdaq (QQQ) relative to the SP500 (SPY) looks like we need a rest after 8 weeks of outperformance.
AVGO stated that AI sales will grow by 100% this year. Clearly overbought but holding.
Tesla (TSLA) another close above the 200 SMA on the weekly and the RSI has already flipped.
Regional banks (KRE) are the most oversold they have been in their history. The $42.50 level is major resistance going back 10 years.
NYSE (NYA) trying to flip the downward trend line. McLellan Summation on the bottom.
20 year treasuries (TLT) are at 10 year support.
Bitcoin (BTC) continues to close above the 200 SMA on the weekly. Major support is $26,350
IPO is an ETF that holds most of the zombie and high speculation companies from 2020.
Oil and Gas exploration continues to grind lower. Setting up a bearish wedge. (XOP)
Gold (GLD) massive bearish RSI divergence and triple top.
Semiconductor Sector (SOXX) having trouble with 500.
LULU solid earnings and guidance but nothing but selling after the open.
Advanced auto parts (AAP) missed earnings, lowered guidance and cut its dividend 83%. Investors fled on the most weekly volume in the companies history and broke the pandemic low
The expanded tech / software sector (IGV) is laden with legacy companies ADBE ORCL etc. It usually breaks out during the beginning of boom cycles.
ARK flagship fund (ARKK) most closings over the 200 SMA in 2 years and above a 6 month base.
Boeing (BA) touching and attempting to cross the 200 weekly SMA for the first time in three years.
Robotic AI ETF (BOTZ) breaking above the 200 SMA on the weekly.
Watch this video for a detailed analysis of what to expect next week. Watch the key levels on Tesla and the other AI names
Wishing Everyone Massive Success!