Momentum Movers
Striking While the Iron Remains Hot
Good afternoon all - Back in the mix after a weekend of chop-stirring headlines and we're kicking off Monday with a market that feels like it's itching to pick a direction, or fake us out again. Indexes opened green but aren't running with much conviction just yet. We're seeing some strength in semis and tech while energy and small caps lag a bit. CPI is due Wednesday and that's already casting a long shadow over the tape. Everyone's watching to see if the Fed narrative starts to shift again or if we just keep playing the waiting game.
Bitcoin's bouncing back after weekend weakness, and Apple’s WWDC is grabbing some eyeballs - not a huge mover on price yet, but plenty of chatter around AI integration. Elsewhere, China dropped a few more easing measures, and crude is hanging out near its lows despite OPEC+ noise.
SPY Daily
SPY is still hovering near all-time highs. The overall mood feels optimistic, but there’s a sense that investors are waiting for more direction, especially with the May CPI inflation report just around the corner. There’s been some shifting out of SPY and into tech-heavy names, which isn’t surprising given how much attention the tech sector is getting lately. The big question for SPY right now is whether the rally can keep going, or if we’ll see a pause as everyone digests the latest economic numbers. Also worth noting we are nearing the top of the standard deviation range on the daily time frame which can bring forth some downside & consolidation although, the moving average’s are nearby so we are not necessarily extended by any means.
QQQ Daily
Turning to QQQ, this ETF has been leading the charge, thanks to all the excitement around tech and AI. With Apple’s WWDC happening this week and companies like Nvidia still in the spotlight, it’s clear why money keeps flowing into QQQ. The index is riding a strong wave, but as always, there’s a risk that things could cool off if we get disappointing news on inflation or global trade. For now, though, tech is where the action is, and QQQ is reflecting that strength.
Same thoughts in regards to the moving averages & standard deviation range as mentioned above.
IWM Daily
Meanwhile, IWM, which covers small-cap stocks, has finally started to perk up after lagging behind for much of the year. It’s had a solid couple of weeks, but small caps still face some headwinds from concerns about economic growth and the Fed’s cautious approach to rate cuts. If upcoming data surprises to the upside, IWM could keep gaining ground, but for now, it’s more of a “wait and see” story compared to the big tech names.
This has been probably my favorite setup of the three in regards to the daily chart whereas SPY & QQQ remain chugging higher steadily, the Russell has presented us an inverse head & shoulders with a minor bull flag to boot as well. Having broken out above 210, I noted there was room towards the 200D around 215 which is getting closer each day.
Overall, all eyes are on the economic calendar and major tech events this week, which could set the tone for where these indices head next.
We’ve got a few standout names and flow setups worth tracking today - all listed below. Let’s get into it.