After last week's brief pullback, SPY reached and closed at new all time highs today as it gained an additional 0.59%. But it was actually small caps that led again as IWM closed up 1.33% after being red in the morning. QQQ also gained another 0.88% and is inching closer and closer to its all time high of $637.01 set in late October.
Starting with IWM, it did open below the $253.30 area mentioned in yesterday's update. In the morning IWM was weak and lagging quite a bit as it opened lower, but it took off later in the day and broke through that $253.30 and closed well above it at $256.08. This now gives it a failed breakdown on the daily and starts another uptrend for it. The prior uptrend (yellow channel - which it closed back above today) will now act as resistance around $257.15 unless it can gap above it tomorrow. Given that it closed at $256.08 it's likely that it opens below it, but just like with yesterday, it can still break through that resistance even if it opens below it. Meanwhile the new uptrend (white channel) from today's failed breakdown will provide support around $253.50 tomorrow if we do get a pullback.
For QQQ, it opened above its $618 support level that it needed to in order to remain in its uptrend this morning. It also didn't break through it as it put in a low of $618.54 before rallying. But it did break through its primary downtrend resistance at $621.50, which starts a new uptrend for it. The previous trends are also still valid, so this new one will be its 4th trend for now (white channel). Support from this new uptrend will be just under $623 tomorrow while the next resistance level to watch will be at about $625.85 from its prior uptrend (purple channel).
Lastly, for SPY nothing really changed today. It confirmed the failed breakdown yesterday and it remains in the same 2 daily uptrends from the failed breakdown on January 2nd.
