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Sunday Update for Week of 10/15 – A Recap from Last Weekend’s Analysis

A prepared trader is a profitable trader, and Sunday is a great day to get ready for the week ahead by studying up from last week’s price action. This weekend, we are focusing on the continued bloodbath in the broad markets and if there is any relief on the horizon. We will take a look at last weekend’s charts and compare after this week’s price action.

NEW FEATURE ALERT: Be sure to check our brand new “sensitivity” feature that allows to you increase or decrease the width of your alert to allow for some margin of error in case the price only misses by a few cents. This week, we tested the alert out on BABA, see how it did by clicking here!

SPY: Daily Chart

Chart Published Last Sunday

Analysis Published Last Sunday

  1.  The SPY initially bounced up on Monday which fulfilled the oversold conditions but then broke down through the support trendline.
  2.  The price pierced the EMA (50) and then bounced to close above it.
  3.  The daily Williams %R found resistance at the weekly Williams %R (dotted line).
  4. The daily RSI started to break down through the weekly RSI but is now very oversold with the %R which may point to at least a dead cat bounce next week.

This Week’s Analysis (October 12th Close)

Analysis:

  1. The SPY broke down hard through the ascending wedge support and continued to drop hard afterward between the previous support and next level of support.
  2.  This is the next area to watch if the price continues to drop into the next week.
  3. The Williams %R is very oversold and has bounced from here in the past after positive divergence has formed (shown by the pink line).
  4. The RSI is very oversold as well and has shown this is a bottoming area in the past.

SPY: Weekly Chart

Chart Published Last Sunday

Analysis Published Last Sunday

  • The weekly chart ended up materializing here from last week’s analysis with negative divergence holding up and the MACD crossing to the downside. The RSI and Williams % R both have room to move down still towards the SMA (20) and channel support below.

This Week’s Analysis (October 12th Close)

Analysis:

  1. The price dropped down perfectly to test the EMA (50) and channel support below.
  2. The %R still has room to move down from here but is quickly becoming oversold.
  3. The RSI negative divergence continued to materialize last week with oversold levels getting very close.
  4. The MACD cross last week really started to materialize with more downside left.

QQQ: Daily Chart

Chart Published Last Sunday

Analysis Published Last Sunday

  1.  The negative divergence materialized on the daily chart with price breaking through both moving averages below.
  2.  Selling volume increased dramatically in the last two days of the week.
  3.  The Williams % R is oversold here which has proved to be a bouncing point in the past.
  4. The RSI is also oversold with the Williams %R which shows the market may have some type of dead cat bounce next week.
  5. Negative divergence materialized on the MACD as well with a bearish cross at the end of the week.

This Week’s Analysis (October 12th Close)

Analysis:

  1.  Price bottomed perfectly on the channel support with a bounce on Friday.
  2.  The %R is very oversold with the indicator bouncing on Friday out of oversold conditions.
  3. The RSI is oversold as well similar to the %R. When the lower indicators have been this oversold in the past, a strong move up has followed.
  4. The MACD is starting to show signs of curling to the upside.

QQQ: Weekly Chart

Chart Published Last Sunday

Analysis Published Last Sunday

  • The price dropped down to test the SMA (20) support below as volume increased significantly over the prior week. If the SMA (20) breaks, watch for a further pullback to the price channel support below which coincides almost perfectly with the EMA (50).

This Week’s Analysis (October 12th Close)

Analysis:

  1. Price bounced off the EMA (50) here with a close below the SMA (20).
  2. A huge uptick in volume last week. Notice the last time this much volume occurred within a week (February), a bottomed formed.
  3. The RSI is moving down fast but has more room to move down.
  4. The MACD crossing here is looking like more possible downside left in this move.

XBI: Daily Chart

Chart Published Last Sunday

Analysis Published Last Sunday

  1.  The ascending wedge support that we were watching to hold last week ended up breaking down as well as the SMA (20) breaking down through the EMA (50).
  2. After using manual tuning, this next support line was found and price bounced right off of it.
  3.  The Williams % R remains oversold with the RSI.
  4. The MACD is accelerating down after crossing last week.

This Week’s Analysis (October 12th Close)

Analysis:

  1. The support broke down hard from last week with strong volume.
  2. Price bounced hard off the yellow support line with signs of consolidation.
  3. The %R is oversold here with signs of a bottom in place.
  4. The RSI is also oversold similar to the %R which has been an area for price reversal in the past.
  5. The MACD is showing signs of curling to the upside. This is another sign the price may be nearing a bottom.

XBI: Weekly Chart

Chart Published Last Sunday

Analysis Published Last Sunday

  • After a very strong move down last week, the price bounced slightly off the ascending wedge support and right below the EMA (50).

This Week’s Analysis (October 12th Close)

Analysis:

  1. Price broke through the channel support and the TrendSpider system picked up the next support area to watch below (green line).
  2. This is the next area price could potentially test if the selloff continues.
  3. Oversold conditions on the %R have not been this low since 2016.
  4. The RSI is also the most oversold it has been since Winter of 2016.
  5. The MACD is getting close to breaking down through the zero line.

Timestamp from this week!

EARS

UAL

XLE

 

 

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REMEMBER: These are charts that have interesting technical setups based on automated technical indicator analysis included. Charts and analysis provided for educational reasons only. TRENDSPIDER IS A CHART ANALYSIS PLATFORM. IT IS NOT INTENDED TO BE TRADING OR INVESTING ADVICE. ALWAYS DO YOUR OWN DUE DILIGENCE USING MULTIPLE SOURCES OF INFORMATION AND/OR SEEK THE ADVICE OF A LICENSED PROFESSIONAL BEFORE TRADING OR INVESTING. Please read our full risk disclaimer on our website by clicking here.