Last week the market got back to 2014 levels with big gains for all major market indices. The S&P 500 was up 2%, the DJIA up close to 1%, and the latter tested the 18,000 area for the first time since last year. Oil prices bottomed and started to climb. The question is: Will the market continue higher? A look at the major market indices might give us a clue as to where the market will be heading this week and key levels of focus.
QQQ Last Week
We saw accelerated gains for the QQQ’s this past week with five consecutive green days and a new yearly high set on the last trading day before the long weekend. We were looking at the possibility of a continuation with a measured move into $104.50. The QQQ not only continued to erase the first area of resistance, but went ahead and traded through the secondary area at $105.26 and $106.25, the resistance peek that was set back in late November of last year.
QQQ This Week
As far as what is next for the QQQ … We need to remain bullish. Although the move is a bit extended, it might continue higher. Further projected targets are: $110.00, $125.00 for medium and long term. This move could even ignite a rally, as it would be the first breakout of a major time frame chart (weekly, monthly).
- Bias: Bullish
- Support Levels: We will look at prior highs as possible areas of correction: $106.25, $105.25, $104.50, $103.21
- Resistance: $109.77 and void into $120.00
Daily Chart of QQQ below represents the ETF’s trading activity until Friday
SPY Last Week and This Week
We saw a strong move for the SPY last week with five consecutive highs that cleared a multi-week resistance. The spike higher can set the stage for more bullish action in the following week.
- Bias: Bullish
- Support: $204.00 and previous highs will also be considered areas of minor support $209.00, $206.25
- Resistance: $215.00
Daily Chart of SPY below represents the ETF’s trading activity until Friday’s close
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