Mid Day Macro Market Minute

As the market winds down for the long weekend I am noticing interesting things in the charts of the major Index ETF’s:$DIA,$SPY,$IWM,$QQQ. Let me use the DIA to illustrate.

The daily chart for DIA above shows a big move up Wednesday printing an Evening Star candle but confirmed higher Thursday at midday. But if it closes right here, and it has been a very tight range so far, it will print a Hanging Man, potential reversal, candle at the top of the Bollinger bands with declining volume. The pattern is the same for the other 3 Index ETF’s but with QQQ outside of the Bollinger bands and IWM just in the upper half. The weekly chart below paints a very different picture. This week will print a bullish engulfing candle with a relatively large real body and small to almost no upper shadows. This is very bullish. This divergence between the daily ad weekly timeframe has been going on for some time now. Can next week make the move higher on the daily charts to break this divergence? With a strong close Thursday, and vacation breaks ending it is set up for it.

As always you can see details of individual charts and more on my StockTwits feed and on chartly.)

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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