IWM's weekly downtrend didn't last long as it gapped up on Monday and was pretty much straight up for the week. It gained 4.6% this week and led the way higher as it hit new all time highs. QQQ had a nice bounce back week as well, logging a 2.2% gain. Meanwhile SPY gained 1.6% and also hit new all time highs. After briefly showing some signs of life, the VIX ended up flat for the week, settling back down at $14.49. Bitcoin was strong to start the week off but gave back all of its gains to essentially finish the week off flat as well. Earnings season kicks off this week with big banks reporting and the delayed Supreme Court tariff ruling could potentially happen this Wednesday, January 14th. This week we will also be going into a 3 day weekend with the markets being closed the following Monday, January 19th, for Martin Luther King Jr. Day.
On a weekly time frame, even though IWM cleared through its prior downtrend and had a new all time high close, it still starts a new downtrend. However, it was a very strong finish and it's possible it just breaks through this new downtrend as well and continues pushing higher. But, the new downtrend resistance for this week will be at about $261.15. Since IWM closed at $260.23 it's possible we get a gap up above it on Monday, in which case that $261.15 area would become support. We'll have to see how it closes the week and whether it's above this new downtrend or not.
For QQQ, it broke through its prior weekly downtrend resistance from the all time highs, so that is no longer valid resistance. It didn't break through any other trends, including its current uptrend, so new trends will be started for this week. Support from its current primary (white channel) uptrend is at about $620 for this week. So that's the big level to watch if we do get a little pullback going. Resistance from the prior weekly uptrend (purple channel) is going to be at about $640.50.
SPY looks almost identical to QQQ on weekly time frames as it also did not break through any support levels last week and remains with the same two uptrends. Support from its primary (white channel) uptrend this week will be at about $688.75 and that's the big level to watch on any pullback. Resistance from its primary uptrend (purple) is at about $716. If it were to break through that, then the next resistance from the primary channel would be a little higher at $717. These levels are about 3% away from current price, so we would need to see a pretty big rally this week to reach them. So probably unlikely we get there, but it's possible.
