The initial support for the Spyder Trust (SPY) at $142.40 is now being tested, with the 20-day EMA at $141.70.
From last Wednesday's high, the 38.2% Fibonacci retracement support is at $140.79, which would typically be a good entry level using Fibonacci analysis. The more important support is at $140.37 (line c) and the November lows.
The S&P 500 A/D line broke through its resistance (line d) last week, which was a positive development. It needs to hold above its WMA on a further correction and then turn higher to reaffirm its uptrend.
The SPY tested its downtrend (line a) early last week, with first resistance now at $143.40, followed by the $144 to $144.55 area.
The SPDR Diamond Trust (DIA) continued to rally strongly early last week, as it gapped above the 61.8% Fibonacci retracement resistance at $131.90. The rally stalled at $133.34, which was just below the monthly R2 pivot resistance at $133.68.
The Dow Industrial A/D line was also very strong, moving well above the resistance (line f) that goes back to last July. Its WMA is also in a very solid uptrend, which is a plus.
There is next support for DIA at $130.65 and the rising 20-day EMA. More important support waits at $129.16 (line e), which was the November low. The monthly pivot is at $129.38.
The iShares Russell 2000 Index (IWM) closed back above its former uptrend and surpassed the 61.8% Fibonacci retracement resistance at $82.83 before turning lower. IWM early Friday was already back to first support in the $82 to $82.40 area.
The next support is at $81.40, with the 38.2% Fibonacci retracement support from last week's highs at $80.85. The monthly pivot support is at $80.39, with the November low at $79.63.
There is resistance now at $82.80 to $83.80.
The PowerShares QQQ Trust (QQQ) had two failed attempts to break through the resistance at $66.39 before turning lower. The next support is at $64.44, which is the monthly pivot and the 38.2% retracement level. The 50% retracement support is at $63.85.
The Nasdaq-100 A/D line (not shown) did break its downtrend from the July highs last week, which is a positive sign. It should now find support at its WMA.
Initial resistance stands at $65.13 and the flat 20-day EMA, with longer-term resistance is in the $68 area.
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