The market gapped down on Monday and never recovered this week. We tested the support from late June. In other words, the market gain from June has evaporated. What it means next week is that we’re at least trading in a lower trading range now. This could be the start of the long-awaited retracement. Let’s just see if we can break below this important resistance at 91 on the SPY. The pre-market on the e-mini this Monday morning is already at 906. Let’s see if volume can follow at the open and failures to get back up.
From Figure 2, we can see that we’ve broken below a decending support this week. But we managed to climb back up above it on Friday.
S&P500 ETF
S&P500 ETF
GICS Sectors Review
The chart below is taken from CaraCommunity’s RSIApp. Because of the dip in the market this week, 6 of 10 sectors are below the 50 threshold in their 7 days RSI. Whereas last week, we only had 2 of 10 below 50. This again tells us what we already knew from the SPY charts above, that is, we had a sell off this week. However, from the 7 weeks RSI, none of the sectors are below 50 yet. So this shows that we still have room for a further down move if the market decides so.
Ticker  |
Last |
RSI7d |
RSI7w |
RSI7m |
Zone (estimate) |
|
XLE *
|
49.21 | 30.65 | 52.57 | 41.68 | |
|
XLB *
|
26.07 | 35.3 | 56.16 | 44.92 | |
|
XLI *
|
22.20 | 32.82 | 55.04 | 39.97 | |
|
XLY *
|
23.13 | 43.63 | 59.68 | 48.01 | |
|
XLP *
|
22.89 | 46.73 | 58.97 | 44.89 | |
|
XLV *
|
26.08 | 67.11 | 65.77 | 45.17 | |
|
XLF *
|
12.04 | 50.41 | 62.71 | 39.32 | |
|
XLK *
|
18.12 | 57.01 | 73.05 | 52.15 | |
|
IYZ *
|
17.70 | 37.76 | 55.69 | 44.8 | |
|
XLU *
|
27.47 | 57.49 | 61.05 | 40.37 |
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My name is Paul and I am a full-time engineer, part-time trader. Back in 2000, I deposited my $5000 interest-free student loan with an online broker. Since then, my interest in trading has become an obsession.
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[...] chart below is taken from CaraCommunity’s RSIApp. The RSIs are slightly higher this week compared to last week. Otherwise, the overall picture remains the same between various [...]