Welcome back everyone!
Plenty has happened over the weekend with the US halting military strikes on Iran. This came after nearly two weeks of continued strikes every single night. All while this happens, there will continue to be a blockade at the end of the Strait. Iran has also agreed to halt all strikes against the US.
This alone will bring a natural bid to the US markets which is already seeing a sharp gap up to start the week. Iran has stated that there are no ongoing negotiations between Washington and Tehran.
Traffic through the Strait is still halted while Iran keeps control of the passage. Oil will continue to be bid at this time until official negotiations are made. The more the US lies about negotiating, the higher the floor on oil prices.
This week we can expect a slow grind higher into balance of value which will be covered inside chat this morning.
Before diving into the SPY and QQQ, I want to first note how right we were last week. We called on a sell on the QQQ down to the 21-Week EMA along with a sell on the SPY down to the 10-Week EMA. Here’s what was said:
Both our levels were hit on the week and puts us in an interesting spot this week. We can now dive into the analysis for this week.
