That Was The Week That Was – Indices Analysis 3/2/2023

The S&P 500 and the Nasdaq continued their rally last week, with the S&P steaming ahead after recently breaking through its downward trend channel. In previous weeks, the S&P 500 has a couple of signs of strength on its way to breaking through the channel.

I did mention that the S&P was coming up to resistance at 4100 and on Monday it did seem like a reverse of its price was going to happen with Monday being a down day. We did see a sign of weakness on this day with Weakness has Appeared principle but, the next day the S&P continued to push itself higher.

S&P 500 Daily Chart
S&P 500 Daily Chart

With the market rallying over the next 3 days due to earnings beat by Meta and the likes, we rallied to 4200 a significant resistance. A volume spread analysis principle appeared on Thursday with Supply Overcoming Demand and on Friday we witnessed a down day with a down bar confirming the weakness. The down day occurred due to Apple missing its earnings by about 5%.

It looks as though the S&P is running out of steam for the minute and I wouldn’t be at all surprised if we witness a retracement back towards the trend channel. If the market instead shrugs off the Apple earnings a retest of the prior resistance of around 4300 could be on the cards.

The weekly chart does not look like there is any weakness yet, with an increase in price there has been a slight increase in volume which seems to be a healthy trend for the minute.

S&P 500 Weekly Chart
S&P 500 Weekly Chart

What’s Up With The Dow

The Dow Jones was not on a bull run like the S&P 500 and the Nasdaq, it simply consolidated around 34000 for the week. So is it trying to tell us that the market may be running out of steam? So 34000 – 34500 is a critical level for the dow and it has been stuck there since December 2022.

Dow Jones Daily Chart
Down Jones Daily Chart

Happy Trading