Last week Spy bounced hard after retesting 20 Day Moving Average and we closed right in the resistance Zone . I have pointed to SPY $390 regularly. Friday afternoon I sent out a reminder Tweet to watch for resistance at the $390 level and we closed at $389. The reason I have continually pointed to SPY $390 is because, that is a Critical Resistance level. It was support but we broke on June 22, and since then we closed below the 20 Day moving Average for 3 constitutive days showing Spy $390 has been very strong resistance. If the Bulls can get SPY over $390 on big volume, we could see a bull run to around $407.83. On the other side of the coin, we have Support at SPY $384 and and $SPY $378. if we break $378, I suggest add to Short positions.. The bears have a great risk reward set up using $390 as your risk level on a closing basis.
QQQ: We bounced off the 20 Day moving average on the QQQ’s but they still have a bit of a way to go to catch up with the other Indices but It’s more likely that the other indices come down rather than QQQ
going up much further.
Resistance: $282 and $285
Support: $278 and $273 if we break $273 Short or go to cash.
The Dow Jones: was up over 2.5% on Friday with.a close above the 200 Day Moving Average. As a technician the Dow looks great and you really have to try and shut out any noise to the contrary but there are a few rare occasions that I teach my students, to pay attention to besides the charts and one of them happens to be Fed meetings. Nobody knows what Powell will do or say, but if history is any guide, I believe we will see the same HawkishPowell that we saw last month when the Fed hiked rates and vowed to continue until Inflation gets beck to 2% The Uk just announced Inflation Data that showed 10%+ inflation across the pond. I believe Fed chairman Powell when he says “We will continue to raise rates to fight inflation” and I also believe The Fed Chairman when he says there will be more pain to come and that not much has really changed. We still have The Russians, China, The Saudis and Putin to deal with. In any event we have Resistance at $333 and 335 Support is $325 and and $319.
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