The 6 week rally from the low on Mar 23 appears to be digesting the gains or struggling for direction, as you see fit.
$SPY ended lower for the week, down -2.65% on Friday on a very low volume day as most of the exchanges worldwide were closed for Labor day holiday. The critical 61.8% retrace and gap resistance is acting as a wall at present.
The US markets started May poorly, especially the small caps (IWM), which was trounced for -3.97%.
FED induced rally appears to be running out of steam. $SPY has lost the 20 EMA. Price and momentum are diverging. Cycles are pointing to a low around 3rd week of May.
Story stocks like $AMZM, $ZM, $TDOC, strong sectors like semiconductors (SMH) -4.71% are likely trading heavy due to anticipated 2nd round of tarriff war with China. These geo political tensions, alongwith economic devatation from Covid-19, does not bode well for the markets for the near future.
Technically the markets are showing weakness, though a supportive tweet or further FED stimulus can again rip the markets higher.
$SPY ended lower for the week, down -2.65% on Friday on a very low volume day as most of the exchanges worldwide were closed for Labor day holiday. The critical 61.8% retrace and gap resistance is acting as a wall at present.
The US markets started May poorly, especially the small caps (IWM), which was trounced for -3.97%.
FED induced rally appears to be running out of steam. $SPY has lost the 20 EMA. Price and momentum are diverging. Cycles are pointing to a low around 3rd week of May.
Story stocks like $AMZM, $ZM, $TDOC, strong sectors like semiconductors (SMH) -4.71% are likely trading heavy due to anticipated 2nd round of tarriff war with China. These geo political tensions, alongwith economic devatation from Covid-19, does not bode well for the markets for the near future.
Technically the markets are showing weakness, though a supportive tweet or further FED stimulus can again rip the markets higher.