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.
After several weeks of reversal, confirmation, and continuation, the market finally faced its first meaningful test of the recent uptrend. Short-term conditions weakened as the major index futures slipped into lower lows and lower highs below declining 5-day moving averages, but the bigger picture remains considerably healthier. The major indices continue to hold important support, breadth remains constructive, and Bitcoin delivered the week’s standout move after finally breaking through a level we’ve been watching for weeks. The key distinction this week: weakness is not the same thing as damage.
Key Takeaways
Short-term character changed: Major index futures shifted to lower lows and lower highs below declining 5-day moving averages.
Bigger picture remains intact: SPY, QQQ, DIA, and IWM remain above important longer-term support and their recent breakout structures.
Weakness ≠structural damage: So far, this looks like an orderly pullback within the larger uptrend.
Bitcoin broke loose: The long-watched $65,500 level finally gave way, producing a powerful run toward the anchored VWAP from the all-time highs near $78,770.
Bonds remain a concern: Treasury yields continue to hold their long-term breakout.
Breadth softened but remains healthy: 54% of S&P 500 stocks remain above their 50-day MA and roughly 70% above their 200-day MA.
Bullish Percents confirm some cooling: S&P and Nasdaq participation pulled back after stronger readings, but nothing suggests broad structural deterioration yet.
Stay tactical: Be more selective, trim into strength, raise stops where structure allows, and let new evidence determine the next move.
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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