Market Update 12/3
Week of (11/27-12/1) Recap
$SPY +3.80(.83%), $QQQ +0.43(0.11%), $IWM +5.58(3.11%) $DIA +9.25(2.61%)
Overall, we saw a very strong week throughout the markets led by the Russell 2000 and the DOW, with the S&P 500 and the DOW closing at year highs, while the Nasdaq had a failed breakout of recent highs. We saw healthy rotation out of large-cap tech into small caps and industrials, which allowed tech to take a rest without bringing down the market. On Wednesday, we saw the best US GDP print since Q4 2021, coming in at 5.2% vs 4.9%, while on Thursday, we say US PCE come in at 3.0%. While the market showed possible signs of slowing down, the bulls made it extremely difficult for them to follow through into the end of the week.
Charts for the upcoming week (12/4-12/8)
SPY 0.00%↑ WEEKLY LOOK
We managed to break the 7/27 $457.82 pivot this week. On any pullback, look for this to be a potential S/R flip. This is now making its way into a strong resistance zone between $460-$467. Watch to see how it handles this. The MACD is continuing to move up, which generally leads to a longer-term upside when looking at it from the weekly perspective.
QQQ 0.00%↑ DAILY LOOK
This S/R flip from July highs continues to hold very well. This has been digesting the recent move well over the $388 level. It is hard to get too bearish while still above that. Last Thursday and Friday, the bears tried to make a push lower, but that failed both days around the $386 level. Williams %Range and RSI still signaling overbought levels, but in this market, we know how that goes… If $388 continues to hold, watch recent highs of $394 for potential resistance. If $388 fails, watch $386 and then the 21-day at $382.
Huge mover on Friday! This was a textbook bullish pennant with an S/R flip of resistance, as it was riding the 8-day. We saw quite the rotation into small caps such as UPST 0.00%↑ AFRM 0.00%↑ and CVNA 0.00%↑ . Fridays move went right up into previous resistance. I would think that this may be due a rest this week, but would not be surprised to see higher prices into the end of the year.
FAVORITE SETUP:
This is looking very good into the week ahead. I have been seeing a little bit of chatter on this setup. After a strong breakout, this has consolidated very nicely while holding the 8-day. The $60 level has held extremely well. Looks like it is ready for the next leg up. The only resistance between here and IPO highs is the $65 level. If this can clear that with volume, there should be a great trade. This setup is looking very similar to some rippers that we saw last week.
Thanks to everyone who has subscribed to the Market Update. It truly means a lot to me. Good luck and lets crush it this week!
Thanks,
Spencer
DISCLAIMER
The information provided is for informational purposes only and is not intended to be personal financial advice.