Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Is The Stock Market Looking To Consolidate Near Highs?

Published 11/08/2021, 11:17 PM

Inflation pressures take the medias focus this week.

Indices Daily Charts

Nevertheless, we must remember the news does not always align with market price.

With that said, prices are holding near highs in the major indices.

This is a positive sign as investors are looking for a continuation in trend or consolidation.

However, lower amounts of volume paired with smaller daily ranges in the above chart’s point to more consolidation.

Looking at the S&P 500 (SPY), NASDAQ 100 (QQQ), Dow Jones (DIA), and the Russell 2000 (IWM), each is sitting within their prior days’ range.

If the market makes a small break from the highs, we can look at the last couple of day’s lows as minor support levels to bounce from.

These support levels are also shown as black lines on the above charts.

Using these lows as reference areas we can watch them as potential buy entries if the market begins to bounce.

Additionally, using bonds as a risk on or off indicator—High Yield Corporate Bonds ETF (JNK) has pulled back towards its 200-Day moving average, while the 20+ Year Treasury bonds (TLT) is holding above recent price action and over its 50-DMA.

JNK-TLT Daily Chart

With long-term bonds showing strength and JNK pulling back towards support this further points to market hesitancy.

Nonetheless if a small pullback forms, the media will likely point towards inflation as a key pressure, however, we will be one step ahead knowing that the technical analysis has already given us a partial warning.

ETF Summary

S&P 500 (SPY) 466.92 minor support.

Russell 2000 (IWM) 237-240 support area,

Dow (DIA) 359.87-361.89 support area.

NASDAQ (QQQ) 393.92 minor support.

KRE (Regional Banks) 72.90 support area.

SMH (Semiconductors) 294 minor support.

IYT (Transportation) 273.76 support the 10-DMA.

IBB (Biotechnology) Inside day.

XRT (Retail) 100 minor support.

Junk Bonds (JNK) 109.05 support the 200-DMA.

SLV (Silver) 23 resistance.

USO (US Oil Fund) Watching to hold over the 10-DMA at 56.89.

TLT (iShares 20+ Year Treasuries) Inside day.

DBA (Agriculture) 18.93 support. 19.57 resistance.

Latest comments

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.