SPY Trends and Influencers May 9, 2026

Last week, the review of the macro market indicators saw, with the month of April, including Chairman Powell’s last FOMC meeting, in the books equities showed continued strength driving to new all-time highs for the third week in a row. Elsewhere, looked for Gold ($GLD) to continue walking the fence between a downtrend and digestion in the uptrend while Crude Oil ($USO) bounced around in broad consolidation near $100/bbl. The US Dollar Index ($DXY) looked to continue to drift in consolidation, this time to the downside, while US Treasuries ($TLT) continued to hold over 16 month support like nothing was happening.

The Shanghai Composite ($ASHR) looked to continue a short term uptrend closing in on the 2025 top and a new 11 year high while Emerging Markets ($EEM) pushed to new highs in their uptrend. The Volatility Index ($VXX) looked to continue in the normal zone removing all the pressure on equities. The charts of the $SPY, the $QQQ and the $IWM continued to look extremely strong on the longer timeframe with a 4th positive week moving to new highs. On the shorter timeframe the SPY, the QQQ and the IWM also looked very strong but with overheated momentum and possibly in need of a pause.

The week played out with Gold finding support and moving back higher while Crude Oil sold off sharply. The US Dollar drifted lower to a 2 month low while Treasuries bounced after retesting 10 month lows. The Shanghai Composite finished at a retest of the highs of 2026 while Emerging Markets continued to make new all-time highs.

The Volatility Index held near last week’s low in the normal range. This gave equities free reign to move higher and they rose to new highs multiple times during the week. This resulted in the SPY, the QQQ and the IWM all printing a new all-time high Tuesday and Wednesday and the SPY and QQQ another on Friday. What does this mean for the coming week? Let’s look at some charts.

SPY Daily, $SPY

The SPY came into the week at a new all-time after breaking a short term consolidation. It held Monday slightly lower and then made another new high each of Tuesday and Wednesday. It paused again Thursday and then closed the week with another new all-time high on Friday. It is now at the top of the Bollinger Bands® but pushing then open higher. The RSI continues to roll along the edge of overbought territory in the bullish zone and the MACD rising and positive.

The weekly chart shows the price approaching the 300% extension of the retracement of the 2022 drop at 741.50 with 6 positive weeks in a row. The RSI is rising in the bullish zone with the MACD crossed up, rising and positive. There is support lower at 728 and 724 then 718 and 715 before 710 and 703. There is no resistance above 738. Uptrend.

SPY Weekly, $SPY

With the bulk of the 1st Quarter earnings in the rearview mirror and heading into next week’s May options expiration, equities continue to act strong and tacking on more new all-time highs for the fourth week in a row. Elsewhere, look for Gold to continue walking the fence between a downtrend and digestion in the uptrend while Crude Oil bounces around in broad consolidation under $100/bbl. The US Dollar Index looks to continue to drift lower in consolidation while US Treasuries continue to hold over 16 month support like nothing is happening.

The Shanghai Composite looks to continue a short term uptrend closing in on the 2026 top and a new 11 year high while Emerging Markets push to new highs in their uptrend. The Volatility Index looks to continue in the normal zone removing all the pressure on equities. The charts of the SPY, the QQQ and the IWM continue to look extremely strong on the longer timeframe with a 6th positive week moving to new highs. On the shorter timeframe the SPY, the QQQ and the IWM also look very strong but with overheated momentum and may need a pause. Use this information as you prepare for the coming week and trad’em well.

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