Last Thursday the ‘s SPDR® S&P 500 (NYSE:) and the ‘s Invesco QQQ Trust (NASDAQ:) tested new highs and then gapped lower on Friday showing that the market still had some overhead resistance.
Driving reasons could be related to fears of raising as the U.S. pushes to take on more debt, to caution from pending earnings as Monday starts another round of incoming reports.
Additionally, the ‘s iShares Russell 2000 ETF (NYSE:) pulled off and could be looking for another revisit of its 50-Day moving average at $223.28.
With that said, we can also factor in the major indices’ current price range.
In the above charts, each has a range created by their recent highs, lows, or in the case of IWM, support from 50-DMA.
This can give us clear support and resistance levels to reference and trade-off this week.
Also, when it comes to using these price levels to determine a potential breakout or breakdown in the market it can help to watch if...read more...