QQQ - S&P 500: Ready For The Squeeze Week Starting 6th May (Technical Analysis)
2024-05-05 16:00:00 ET
Summary
- Weaker data has been balanced out by higher odds of rate cuts. Price action has been "messy."
- In the near-term, there is a bias for higher to squeeze out shorts above the 50dma.
- Once this squeeze is complete, a reversal lower again could develop. 5168 is the level to watch at next week's close.
An eventful week ended in little net movement - the S&P500 ( SPY ) closed just +28 points higher. However, the combination of a dovish FOMC and softer labor market readings did help drive a strong Thursday and Friday. The lack of a further rally could simply be a case of stopping the clock on the action at Friday's close. As last weekend's article concluded , "the bounce can break above 5108 resistance. This likely targets 5168-74 where another leg lower should set up."...
S&P 500: Ready For The Squeeze, Week Starting 6th May (Technical Analysis)