After the pullback (a lot smaller than I expected), both SPY and QQQQ are making higher highs. I don’t know what to add onto this price action but a opinion of long with caution. Qs is having a more than 62% retracement since the low it made at early this year, and SPY is getting there. Oil and some commodities are at the record highs, Gold is back to 900+. There is no good or bad, same as what I mentioned in the previous post, we are having a inflated market, as there is inflation everywhere, we shouldn’t feel surprised to see this kind of the market, instead we should be happy that market is not tanking when others are inflating. Let’s continue check the charts of the following ETFs, and see where should we be cautious.

1. 2. 3.

1. SPY: The 61.8% sits around $144.30 level. I’d like to see spy reaches that level before another pullback. I am waiting for another pullback because I feel the uptrend line (red) is too steep to continue. The volatility is slowing down, as memorial weekend is just around the corner, and summer is just steps away, so pace your own steps, this is just not the right time to be aggressive. The first support level is on the 200 day EMA ($140 level), and then $138 level.

2. QQQQ: Qs is very strong on the daily chart, the chart above is a weekly chart, as we can see the first potential resistance is around $50.50 and then $53. Support is around $48. It might be slowing down its rising pace and starting consolidation.

3. XLF: The financial sector is the worse performer among the three, as it hasn’t make the higher high yet since the early pullback. It seems already started consolidating. I drew two trend lines on the chart, now we just need to wait and see which one breaks first. If the red line breaks first, I will watch for $24.40 level for supports. If the blue one breaks first, I am expecting a higher high, which will push the financial to $29 level (the 200 ema).

Good Luck and Happy Trading :)