The Markets
In the last several days, we’ve seen many charts at or near breakout levels, looking ripe for a move into the next higher price levels. Interestingly, many have stalled (temporarily?) at the precise breakout points.
We’ll take a look at those charts. But first, the usual index check-in.
The Charts
SPY gapped higher this morning and was off to a good start, but sellers quickly stepped in, tempering the action. The week-to-date anchored AVWAP 🟣 was there to provide support on subsequent tests, though the price did poke below at the close. Now we can watch as it and the 5-day MA 🔵 come together near $581-$582 for potential support into the weekend. (right panel — 30m chart)
QQQ had a similar gap but didn’t hold the WTD AVWAP and 5-day MA cleanly. $493 is the first spot to get back above.
IWM is our first example of a ‘would-be’ breakout on hold for the third time. Not surprising after the stellar move it has given since the most recent breakout which started down near $218.
DIA remains the leader, gapping higher and holding the gains all day.
TLT The move back to the 100-day MA was enough for the week, and today, it’s back down below the 200-day MA.
DXY The advance in US Dollar Futures has been relentless and is pushing through the 200-day MA. Notably, the rise hasn’t been an insurmountable headwind for stock prices.
BTCUSD is example #2 in the ‘not quite a breakout’ series, as $68,380 keeps a lid on prices once again.
Percolating
Here’s a look at many more charts showing similar ‘almost a breakout’ action.
Click to enlarge and then scroll through the gallery.















Many different stocks from many different sectors are having short-term difficulty getting into higher new territory.
This leaves the questions —
Are stocks running out of steam?
Or is this just a pause that refreshes before the next move higher?
Given the bullish nature of markets, we have to assign a higher probability that (most, not all of) these moves will eventually continue higher. In the meantime, though, we can keep a close eye on the potential breakouts and the various potential support levels and moving averages below.
These could develop into some beautiful trade setups in the days or weeks to come.
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The Disclosures
***This is NOT financial advice. This is NOT a recommendation to buy, sell, or trade any security. The content presented here is intended for educational purposes only.