After 5 months of seemingly unrelenting power, August discovered markets taking a much-needed breather. The SPY and the QQQ made new month-to-month lows relative to July’s lows, whereas the IWM went inside, suggesting additional consolidation was mandatory for the struggling index.
Now that August is behind us, we’re getting into September, which has been the weakest month of the yr for all three main indices over the previous decade. Will the seasonal pattern of weak point persist this yr, or will that pattern be bucked? Let’s dig into the charts and see!
This month, the SPY ETF closed at $450.35 (-1.62%), making a brand new low relative to final month’s low, however closing effectively above it. The higher Bollinger Band lies simply above the value, which may act as resistance sooner or later, and momentum stays bullish. The Uncommon Options indicator highlights a name wall at $440.
This month, the QQQ ETF closed at $377.99 (-1.48%), making it the strongest performer of the group, however very like the SPY, made a brand new month-to-month low relative to final month’s low. The value is buying and selling just under the higher Bollinger Band and momentum is bullish. The Uncommon Choices indicator highlights a put wall at $358.
This month, the IWM ETF closed at $188.61 (-5.06%), making it the weakest performer of the group. This index went inside on the month and located support on the center Bollinger Band. The latest bullish MACD cross suggests constructive momentum, and the Unusual Options indicator highlights a name wall at $186.