Sam’s Summary w/e Jun 23 2023
SPX: It came at no surprise that we had a PB this week across the indices as Javid has been mentioning for a couple of weeks now. The SP500 although it wasn’t a very deep PB as displayed by the inside bearish bar on the weekly chart it was a pb nonetheless. On the daily chart we can see a neat PB and potentially just another flag in the making if we get a further move up from here. Additionally the Volatility index is very low at 13 so fear is low in the market right now. On the other hand we must take into consideration the downside, this could be just the start of a bigger PB over the coming weeks so again KYL's comes to mind. Lets see what next week has in store for us. The SP500 is trading above all of the major averages for the thirteenth week in a row now.
NASDAQ: The man running up the hill was due a rest at some point and the hill for Nasdaq has been steep as of late. Similar to the SPX the Nasdaq closed the week out with a bearish inside bar on the weekly chart. On the daily chart we can see the rest/PB more clearly after the strong move up in recent months it looks obvious. Will this be a flag or are we seeing the start of a deeper PB? Tine will tell. I must note that price action is still a fair distance away from its D50ma and still looks overextended by my eyes, however, that doesn’t mean it cant keep moving up. The Nasdaq is now trading above all of the major averages for the fourteenth week in a row now.
RUSSELL (SMALL CAPS): Small caps closed this week out with a BrRPI candlestick and broke through its WVI on its way down. Price is currently sat on its w50ma. On the daily chart it’s not the best looking chart and infect not a good looking chart in general to be able to trade directly. This weeks price action definitely took the elevator down unlike the previous two indices which were smooth PB's. On the positive side price is still above both major average and RN 1800 which could act as cluster support. Small caps are now trading above all major averages apart from its WVI.
DOW: After looking like it may just break a new weekly high for 2023 price this week gave us a BrRPI candle instead of a inside bar like SPX and Nasdaq. On the daily chart price broke down round number 34k and on Friday attempted to test its D50ma before closing with a small tail just above. The Dow is trading above all major averages for the fourth week in a row.
FTSE 100: The FTSE 100 closed bearish this week and is also not a good looking chart breaking through its W50ma level. However, price is still just about managing to hold above previous support level from back in May. A break below this and a further move down to 7202 could potentially be on the cards. To the upside we need to see price break above its DVI level for more confidence. Price is still stuck between its 50ma and DVI.
Sam Holden
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