We failed to cover the divergences in the indices yesterday, as well as money flow observations in the weekend video. We’ll address both, as futures drive higher pre-market.
SPY Chaikin Money Flow
SPY is printing higher highs, while MACD drifts lower, creating a bearish divergence. This is what members were concerned about late last week as SPY approached the breakout zone.
In the interim, Chaikin Money Flow in the middle panel shows accumulation. If this continues, the breakout above 327.23 to stock this morning. SPY is currently printing 328.43 (+1.93).
QQQ Chaikin Money Flow
Traders were more worried about big tech last week, prior to FB, AMZN, and AAPL earnings reports. Meanwhile, Chaikin Money Flow was rising. QQQ is printing 267.91 in early trading (+2.17) as price action approaches all-time highs again. Potential triple top.
MACD is showing a divergence here as well.
IWM is showing the same bullish Chaikin Money Flow reading.
On a side note, add Verizon to the watchlist. We’re looking for a breakout with a stop under the opening range low (57.52) if pre-market levels hold.
Join us today in the trading room for our LIVESTREAM broadcast during market hours, as we navigate the current environment. Watch, listen, and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
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