new week, new highs- your local bull market

SPY60$SPY the market continued its march higher this week as the $SPY closed positive for the seventh straight week in a row. We broke and closed at new all time highs and things continue to look very healthy on intermediate to long term charts. An interesting point worth noting is the size of the recent intraday candles shaking up and down over the past few days. We did have some economic data this week that helped bring in some volatility, but the tails and wide ranging rising channel is something I won’t make a big deal about but think it’s worth noting. Going forward we have some upper level support to be mindful of between 207 and 207.75 and as long as we hang around or above there I’d say momentum is fully in tact. Below 207 and the bears can start to do some damage. Same advice I’ve been giving for the past 3 months now, stay with the trend until given a reason not too. We had a few scares this week but after all the smoke had cleared the trend remains firmly in tact.

QQQ60$QQQ I like clean, tight patterns and we’re getting it here within this rising channel. The QQQs under-performed this week and closed mildly red down 0.59%. A breakdown under 104.50 – 105 could get this potential bear flag kicked into gear. But let’s keep in mind we continue to be in a very strong bullish intermediate to long term formation in the index so dip buyers are prone to showing up when least suspected and false breakdown likelihood increases. Nonetheless this is an actionable short setup if you are into counter-trend trading. Stay nimble.

AAPL60$AAPL we saw quite the shake on Monday as we had an interesting algo induced waterfall effect on price as we broke a high level support around 118 and managed to trade all the way down to 111 before quickly reversing our way back up above 115 all in about 10 minutes. That flush set us up to essentially go sideways for the remainder of the week as this market digested the shock to volatility. A near term range to have on watch next week is 114.50 – 116.50 and a break out of that range could give us clues as to which way this is headed next. Good to see the pot getting stirred here, I’ll be watching to see if I can get any actionable setups over this coming week.

tslaDaily$TSLA daily chart here, and after a 8.51% down week I think it’s important to take a look at this growing level of significant support around 218. You can see a very clear potential head and shoulders topping pattern and if we convincingly break below 218 then Tesla could be in trouble heading into the new year. I’m certainly not saying that’s going to happen or even that it’s a more likely scenario, I’m just pointing out the importance of this area. Not very actionable right here based on my trading strategy but it’s an interesting name to have on watch as it trades around here. No position.

TWTR60$TWTR last week’s break above 41 proved to be a head fake as Twitter opened the week dropping like a rock, snapping support and ultimately making new recent lows. The old saying, with false moves come fast moves and that’s exactly what we saw here. The action here is very bearish as we flag below this month long range making lower lows and lower highs. Respect price action and don’t try and fight this until we get a break above resistance that sticks. I’ll continue to watch from the sidelines after getting stopped out of my long on Monday.

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Evan Medeiros

Evan is the founder of the Trade Risk. With 25 years of coding experience and a B.S. in computer science, Evan brings a systematic discipline to investing in the stock market.

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