5 Charts to Pay Close Attention to This Week

Technology Stocks

Technology stocks rallied over 16% from the March 14th low but ran into a wall of resistance last week.

You can see in the chart below that price was stopped in its tracks at old price resistance, the 200-day moving average, and the 61.8 fib retracement level.

When multiple indicators converge near a certain price point the probability of them creating resistance or support increases.

I remain cautious on technology until QQQ can close back above the 200-day moving average. 

Transportation and Semiconductor Stocks

Many market participants consider transportation and semiconductor stocks to be leading indicators when it comes to the overall market.

Last week they started to roll over and they continue to make lower highs which could be indicative of a big picture top.

Both sectors finished the week below their 200-day moving averages.

10 Year Treasury Yield

Interest rates and inflation have been the center of most conversations lately with the core inflation rate in the US at 7.9%.

The 10-year yield is back above 2% and is closing in on the 200-month moving average which has contained further advances since 1987.

Gold Mining Stocks

The world's largest gold mining stock Newmont Corp broke out to all-time highs last week putting a spotlight on the precious metals space.

Gold futures closed lower last week but the miners are painting a different picture.

Bitcoin & Ethereum

Bitcoin and Ethereum have been trading with a strong correlation to tech stocks this year but started to show relative strength last week. 

Is this correlation starting to weaken?

I'll be watching to see if BTC and ETH can continue to trade higher even if technology stocks fail to rally this coming week.  

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Nothing in this blog post should be considered investment advice and is provided for educational and entertainment purposes only. The commentary and information represent the opinion of the author and are not recommendations to buy or sell any security or investment product. The author may or may not hold positions in the securities and investments mentioned. Full disclaimer here.