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.
Summary
After several weeks of reversal, confirmation, continuation, and then a test of the recent uptrend, this week brought… not much of a resolution. And that’s perfectly fine. The major averages continue to consolidate while holding important bigger-picture support, breadth remains healthy, and there are few signs of meaningful technical damage. This week’s charts also provide a good opportunity to step back and remember why we look at multiple timeframes in the first place: understand the broader market environment, then carry that information down to the charts where actual trading decisions are made.
Key Takeaways
The bigger trend remains intact. The major averages continue to consolidate recent gains without significant technical damage.
Short-term conditions improved somewhat. S&P and Nasdaq futures returned to higher highs and higher lows above rising 5-day moving averages, while small caps showed more weakness.
QQQ continues to lag SPX. The Nasdaq 100 remains in consolidation and has yet to make the new highs seen in the S&P.
Breadth remains healthy. Nearly 70% of S&P 500 stocks remain above their 200-day moving averages, while the Bullish Percent indexes show no major alarm bells.
Relative strength isn’t sending a strong risk-on or risk-off message. Growth vs. Value, Discretionary vs. Staples, and High Beta vs. Low Volatility remain relatively balanced.
Leadership remains mixed but constructive. Software remains strong, financials and energy continue to hold up well, while semiconductors remain stuck in consolidation.
Bitcoin’s next test remains overhead. After finally clearing $65,500, Bitcoin continues to challenge resistance near the $80,000 area.
Multiple timeframes matter. Apple provided a useful example of moving from the weekly trend to the daily setup and ultimately the shorter timeframe used to fine-tune execution and risk.
No new signal is required. When the larger trend remains intact and the market is simply consolidating, there’s no need to manufacture a bullish or bearish call.
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.
