Another week and another set of fresh highs for the SPY.
Even with selling from the rumors out the Biden administration about a potential hike in capital gains tax on Thursday by Friday the markets had mostly shrugged off the apparent bad news and squeezed the shorts to end the week strong.
With that said, for the most part, it was a go-nowhere week with the ranges remaining tight portending a potentially volatile week to come.
This coming week is the final trading week of the month and we have a busy econ and earnings calendar so this week could very well be the calm before the storm.
This week’s biggest loser – cryptos.
The crypto market is feeling the hangover after having had a tremendous multi-week rally.
Bitcoin specifically is trading with full-time frame alignment to the downside and which we may find a short-term bottom a large move back to the upside probably isn’t in the cards until next month.
Here are some of the ideas in this week’s video: