Last week’s consolidation was broken to the upside this week as the SPY, QQQ, and IWM all broke above their prior inside week’s high as buyers stepped in to push the markets to multi-week highs.
At one point during the week, the QQQ’s were less than 8% away from the previous all-time highs but by mid-week, the buying pressure subsided when the SPY tagged both its 50 period weekly EMA and 200 day EMA and we saw profit-taking and selling to close out the week.
As we enter into the first full trading week of May it would be pertinent to be cautious (although cautiously optimistic) until there’s a clear indication on what side of the major timeframes price is trading on.
We are currently trading well above the quarterly open so it would take a substantial amount of selling to turn that chart red.
That being said the week ended with all the indices posting shooting stars so the short-term weakness could continue however so long as the higher timeframe remains up expect to see dip buyers in full force.
Gold and TLT logged in inside week’s so let’s see if it’s their turn to play catch up this week.
Finally, cryptos all sailed higher as BTCUSD reclaimed 9000 and there were a plethora of coins that are setting up potentially multi-week moves to the upside. Check out the video to see how I positioned myself into the rally.
Now watch this week’s Weekly Outlook video to see the setups and levels we’ll be watching as well as the technical outlook for the VXX SPY QQQ IWM DIA EEM TSX TLT GLD MGC BTCUSD EEM and more for the week of Weekly Market Outlook For – May 4-8, 2020.