Sam’s Summary w/e Jun 02 2023

SPX: A BuRPI candlestick this week for the SP500 which saw price break and close convincingly above the Jan 23 pivot (it has been a long wait). On the daily chart we can see that it was thanks to price action towards the end of the week to break out of the Jan resistance. Fridays Gup and BuRPI candle makes for a good viewing for us bulls. We are now looking for price to go on and test the next resistance level which is 4325 printed back in August 2022. If price moves back down a fake break out would be on the cards or a retest of the previous resistance becomes support level. The SP500 is still trading above all of the major averages for the tenth week in a row.

NASDAQ: Nasdaq is still leading this market as Javid mentioned in the weekly MR. On the weekly chart price closed above round number 13k with a BuRPI candle and slightly above resistance level 13181. On the daily chart we can see price pulling even further away from its 50ma level. Will we get a pullback from the leader and if so how deep? Or will it keep going to the moon? At some point the man running up the hill we need a rest you would think. Either way KYL’s comes to mind. The Nasdaq is now trading above all of the major averages for the eleventh week in a row.

RUSSELL (SMALL CAPS): A BuRPI candle for the  Small caps this week and we haven’t said that since the back end of march. A nice range to the bar also. As Javid mentioned in the MR that small caps are starting to join the party after the big dogs have done there part to drive us up from the October lows. On the daily chart as you can see it was all thanks to Fridays price action really which ended up breaking through with a gap up of RN 1800, W50ma, D50ma and its DVI levels. We are now looking for a break of 1850 and WVI level for price to be above all major averages for the first time in what feels like a long time. Small caps are now trading above all but WVI major average.  

DOW: A full house for the US indices as the Dow closed the week after tagging its W50ma intra week but then closing with a BuRPI candlestick closing above 33k. Going down to the daily chart we can see it was thanks to Friday’s BuRPI large range candlestick that made the week what it was. We are now looking for price to go on up and break above 34800 area to give us more confidence of a continued move up. The Dow is trading above all major averages now.

FTSE 100: The FTSE 100 close the week with a text book hammer candlestick at the W50ma level. On the daily chart price came down and undercut its DVI before Fridays price action came in to save the day and week with a large BuRPI candle. We are looking for price to break above its D50ma as its next level of resistance for us bulls. Price is trading above all bar its D50ma as per last week. 

Sam Holden

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