Good morning, Spy was up 1.21% yesterday as the markets move higher as it looks like the Debt Ceiling will not be an issue. Several fed officials have made hawkish statements recently indicating they will continue to raise rates to fight Inflation and there is no pivot in sight.
Spy bounced off support to close at $415.23 a level we have not seen since August of 2022. I mentioned there was a strong possibility we would hit the August highs and we are very close to making it there but the bulls need to prove themselves and push SPY over critical Resistance at $417 and close above that level. We are starting to see shorts getting squeezed. If we close over $417 then look for next stop
at $420 and then $427.
If spy trades below $404 look for a retest of the 200-day moving average and to close the gap. The risk reward is in favor of the bears but you never can tell.
RED LINE IS SPY $417
The Nasdaq Triple Q’s are on fire while big tech continues to lead the way. NVDA was up
The Nasdaq Triple Q’s are still in a strong bull trend and we closed at $327.16 a level not seen since August of 2022. We hit our double bottom price target of $327 last week and it looks like QQQ is reaching for the August 2022 highs. Continue to manage risk at the breakout above $321, if we break-down below support at $321 then the gap fills at $315 and $308 should be filled and the bulls will look for support at the $308 Zone.
This market rally is still primarily in big tech and the breadth is not good. We have GOOG, NVDA, TSLA
AMZN and the other suspects as well. Be cautious
FUTU is moved up as the market makers manipulated it higher. It does not trade a ton of volume but
when the market goes back down, and the news start to get out that by Monday all of mainland china
will be locked out of their brokerage accounts and FUTU will be loosing more than half of their clients.
We were stopped out of TSLA for a small loss and we are still Short NTRS and FUTU
Cheers,
G. Allan Collins
