Market Continues To Send Mixed Messages
Markets continue to send us mixed messages and my interpretation remains that we should remain cautiously optimistic. The optimism comes from the longer term uptrends on the daily charts (except $SMH)
The rally off the 61.8% retracement level we observed in the $SPY has been finding resistance along the advancing (green) 20 DMA, that MA has flattened out suggesting more consolidation. In order for bulls to retake control of the trend the high from Monday at 145.69 will need to be taken out.
The key level the $QQQ needs to retake is ~6950, that will get the market back above the prior support resistance area as well as back above the 20 DMA.
The $IWM is still stuck in a range of 83-84 and below prior support. This market will need to get back above 8450 for buyers to take control and the longer term uptrend to be able to re-exert itself. Below 83 would likel y lead to a test of the 50 DMA which is found neaer 82.
The $SMH remains in a range of 3150-32 just below a prior band of support between 3220 and 3240.
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