Week Previous
With the raising of the rates, we saw a strong move up forming the candle pattern "Three White Soldiers." All three indexes were in agreement with this move up. Looking at the daily time frames, we see a bullish divergence between the RSI and price action. This divergence formed an ascending triangle in the RSI, which broke this week. QQQ closed just shy of its 252 EMA daily, and IWM is still far from its 252 EMA. SPY was able to close above all its EMA's.
Week Ahead
The bullish trend is set to resume though there is a concern of how close QQQ is to its 252 EMA and IWM to the channel it recently broke out of. I believe we will likely see at least an intraday pullback Monday. The pullback might also continue into Tuesday before the up move continues. By the end of the week, I would like to see all three indexes clearing their EMA's.
With the raising of the rates, we saw a strong move up forming the candle pattern "Three White Soldiers." All three indexes were in agreement with this move up. Looking at the daily time frames, we see a bullish divergence between the RSI and price action. This divergence formed an ascending triangle in the RSI, which broke this week. QQQ closed just shy of its 252 EMA daily, and IWM is still far from its 252 EMA. SPY was able to close above all its EMA's.
Week Ahead
The bullish trend is set to resume though there is a concern of how close QQQ is to its 252 EMA and IWM to the channel it recently broke out of. I believe we will likely see at least an intraday pullback Monday. The pullback might also continue into Tuesday before the up move continues. By the end of the week, I would like to see all three indexes clearing their EMA's.
Checkout my free weekly market updates on substack!
ronaldryninger.substack.com
ronaldryninger.substack.com
