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.
The market delivered another week of constructive price action, extending the reversal and confirmation we’ve been tracking over the past several weeks. SPY reached a new weekly closing high, IWM continued its advance, breadth remained healthy, and several sectors showed improving participation. Not everything is moving together—Bitcoin remains stuck, semiconductors are still working through resistance, and several Mag 7 names took a breather—but the weight of the evidence continues to favor the bulls. This week we’ll look at where leadership is developing, what still needs work, and the key areas to watch as we head into a quieter stretch of August.
SPY followed through to a new weekly closing high, continuing the reversal and breakout sequence of the past several weeks.
QQQ remains below its prior closing high but continues to hold above its moving averages with constructive price action.
DIA posted an inside week in the upper portion of last week’s breakout candle, while IWM continued to new highs.
Volatility and the U.S. Dollar remain subdued, providing a supportive backdrop for equities.
Bitcoin remains stuck below resistance and its declining moving averages.
Gold continued its rebound but has reached an important area of potential resistance.
Risk-on relationships remain generally constructive, although the message was somewhat mixed this week.
Semiconductors continue working through resistance, while biotech and software maintain their recent improvement.
Financials continue their orderly advance.
Energy stocks broke sharply higher despite relatively subdued crude oil—one of the week’s more interesting divergences.
The Mag 7 consolidated after recent strength, with NVIDIA continuing to show improving price action.
Market breadth remains strong, with a high percentage of S&P 500 stocks above their 50- and 200-day moving averages.
Bullish-percent readings confirm strong participation but are now elevated enough to warrant continued monitoring.
Swing-trade setups are increasing in both frequency and quality as conditions continue to improve.
The evidence favors continued upside, but risk management remains job number one.
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.
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