Let’s see how the response goes to this and if people want, I’ll make this a weekly post on Sundays
This week has been pretty interesting in the markets but one thing that stood out was, the NDX/QQQ making a new ATH or bouncing around there while the SPY/SP500 looks to break its 16 month uptrend since COVID.
Why? FED tapering news. It’s becoming more and more apparent that the FED will begin to taper buying assets this year and this impacts the SPY largely. Back in February 2021, we saw a big decoupling in stock market moves where the NDX actually fell and started a long-winded accumulation phase. It’s only this month where we have seen it break out. The SPY hasn’t had a accumulation phase yet but the tapering could bring a well-needed breather.
I’m looking at tech stocks because, with a backdrop of tapering but low interest rates till 2023, tech stocks could be the primary driver for growth. This was evident by high multiple tech stocks breaking out from their resistance levels and moving higher along the fibs.
I kept it brief for now, let me know if you want me to do this on a weekly basis @saad happy to help the community!