Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Are The Major Indices Poised For A Powerful Move Up Monday?

Published 04/25/2021, 04:06 AM
Updated 07/09/2023, 06:31 AM

The Russell 2000 iShares Russell 2000 ETF (NYSE:IWM), NASDAQ 100 Invesco QQQ Trust (NASDAQ:QQQ), Dow (DIA) and the S&P 500 SPDR® S&P 500 (NYSE:SPY) all have the potential to make large moves Monday, if they clear their resistance levels together.

Indices Daily Charts

This month, the SPY, QQQ, and DIA were able to make substantial gains. Currently they sit close to new high territory. Additionally, each has resistance from a prior high created on Friday, Apr. 16.

However, IWM never made a move back towards all-time highs and has spent most of April struggling to hold over the 50-Day moving average at $222.98. On Friday, IWM came close to clearing its monthly high at $226.69 but missed by 5 cents!

This makes Monday a pivotal day for the small cap sector as clearing the 226.69 price level will mean that IWM is finally looking to get back on track towards its all-time high price at $234.53.

This would also be a great sign for the other indices that could use the boost of IWM’s resistance break to push themselves higher.

It should also be noted that because IWM spent most of its time trading sideways this month, it has the most potential for an explosive move higher when compared to the other indices.

If the situation lines up, we could have a great continuation from Friday’s bullish close.

With that said, we should be carful to set such high expectations as the market plays by its own rules. This means that for Monday, we should look not only for a break of these key resistance points, but also for a large push in momentum through them.

Some of the best breakouts can be confirmed with large amounts of volume to back them up.

ETF Summary

  • S&P 500 (SPY) Needs to clear 417.91 and hold.
  • Russell 2000 (IWM) Resistance 226.69.
  • Dow (DIA) 342.43 resistance.
  • NASDAQ (QQQ) 342.23 resistance.
  • KRE (Regional Banks) Needs to clear 68.43 April's highs.
  • SMH (Semiconductors) Holding over 242.59 the 50-DMA.
  • IYT (Transportation) New highs.
  • IBB (Biotechnology) Second close over 50-DMA at 154.65 confirms bullish phase.
  • XRT (Retail) Cleared recent high of 93.33.
  • Volatility Index (VXX38.92 recent low.
  • Junk Bonds (JNK) 108.56 support.
  • XLU (Utilities) Held the 10-DMA at 66.53.
  • SLV (Silver) Closed over the 50-DMA at 24.10.
  • VBK (Small Cap Growth ETF) 288.11 resistance.
  • UGA (US Gas Fund) 31.75 support.
  • TLT (iShares 20+ Year Treasuries) Support 139.21.
  • USD (Dollar) Broke recent lows.
  • MJ (Alternative Harvest ETF) On watch for Monday.
  • LIT (Global X Lithium & Battery Tech ETFHolding over the 50-DMA.
  • XOP (Oil and Gas Exploration) 76 resistance.
  • DBA (Invesco DB Agriculture Fund Agriculture) 18.75 next main resistance area from 80-month moving average.

Latest comments

5000 AMINUR 2021 4 25
Good morning
Thanks for this analysis, but i bet that the market on Monday will be quite calm as Friday behavior was just an over-reaction of buyers after the drop of Thursday..But the market anyway is full of surprises and predictions / forecasts can't be based only on simple charts or statistic theories, fundamentals and overall economy- political conditions will decide the coming trend..
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.