Taking the analysis further
If you want to go deeper than the weekly charts — including how the levels translate into actual trade planning and risk management — you can follow the work Brian Shannon and I do at Alphatrends.
That’s where we walk through the same market structure in real time and apply the process to actual trade setups.
Good evening,
I wanted to send a quick note before the futures open.
After several weeks of caution, we’re seeing an important shift develop in the market. The major indices are once again making higher highs and higher lows and have moved back above rising 5-day moving averages.
DIA and IWM both closed at new weekly highs, QQQ rebounded strongly, and financials continue to show signs of improving participation.
It’s still early, but the short-term evidence is becoming more constructive than it was just a week ago.
I’ve posted a brief Sunday evening chart review highlighting the key developments and what I’ll be watching as the new week begins.
Enjoy the rest of your evening, and I’ll be back with more as the week progresses.
— Andy
Major indices have repaired significantly from recent weakness.
SPY, QQQ, IWM, and DIA are now making higher highs and higher lows above a rising 5-day moving average.
DIA and IWM posted new weekly closing highs.
QQQ showed a strong rebound, reclaiming the 4-week moving average.
Financials (XLF) continue to improve and may become an important source of market leadership.
Semiconductors remain strong; biotech (XBI) is holding up and bears watching for a potential breakout.
Crude oil is testing support while energy stocks continue to consolidate.
Bitcoin is attempting to establish support near the $60,000 area.
Near-term focus: Can the futures continue the higher-high/higher-low pattern as the week begins?
References & Chart Resources
Chart School
https://www.trading-adventures.com/t/chart-school
The Bullish Percent Index – A Technician’s Perspective
Relative Strength – What Is It Really?
Take the analysis further
If you want to go beyond the weekly charts — including how the levels translate into real trade planning and risk management — you can follow the work Brian Shannon and I do at Alphatrends.
That’s where we review the markets in real time and walk through how the same principles are applied to actual trade setups.
Important: This content is provided for educational purposes only. If you’re reading this online, please review the full disclosure here.
