Welcome back everyone!
Last week was a stunning one to say the least. Support was given at the 10-Week EMA on the SPY which brought a 5% upside move. When looking at the QQQ, we provided support at the 21-Week EMA which brought a 7% move to the upside. Blocking out all the nonsense headline son the Iran war along with the Fed expectations on rates being shifted to hawkish. None of that is more important than price. Reason being is the thesis behind a trade has one factor that determines making and losing money which is price. If a catalyst comes out negative but price drifts higher then the market is telling you that information is irrelevant, at least in that moment. Same applies to bullish catalyst that fails to rally the market.
Blocking out all the noise and simply paying close attention to the two weekly moving averages would of had you not only on the right side of the market but also an area to go long both the S&P and Nasdaq. Take a look at the charts we sent out last week along with the roadmaps:
Last week price sold down toward the 21-Week EMA before seeing a sharp rebound back above the 10-Week EMA. This week we will watch for support to build at the 10-Week EMA for continuation of upside. The 10-Week EMA currently sits at 739.36.
On the other hand, the QQQ remains in between the 10 and 21-Week EMA so we will use the 21-Week EMA as a key support level again this week. This level sits at 680.92 but a key indicator in the coming weeks is once the QQQ has a weekly close above the 10-Week EMA. A flame will be set on tech to boost a rally sending the Nasdaq to new ATH.
Two support levels provided and both of them worked out perfectly in our favor. This week we will once again show a roadmap for what we need the SPY and QQQ to do. Outside of the weekly letter we also provided intraday levels for S&P futures each session so here’s all of the posts from last week:
Now we will move on to the analysis for this week!
