August 17, 2020
By Geoff Bysshe
It was a quiet news day but Mondays don’t need news to go up.
Today’s image represents the percentage of times that Mondays have closed higher then their Friday close since the March bottom.
It’s also worth noting, that not only does Monday give you a bullish edge, it’s also the most bullish day of the week for the IWM by this measure.
So today was a good day to be looking for the consolidation in QQQ and the bullish flag patterns in the SPY and IWM to break out. All three closed over their Friday highs.
Next, an opening range breakout over today’s high in IWM could kickoff a new leg up in that index.
IWM isn’t the only thing you might want to have your eye on tomorrow.
On Friday Bitcoin regained its 10 DMA, and today it exploded higher and took out its recent swing high.
I’m trading it with the ETF with GBTC, because that’s the easiest way, but its pattern doesn’t track the futures as closely as I’d like. And the futures don’t track the cash exactly either.
The differences are probably related to the times in which they trade. Forexample the ETF chart won’t reflect the 24 hour market that the Crypto market trades on. As a result I wanted to see all 3 charts breaking out. Today we got it.
See the charts below.
Best wishes for your trading,
(Geoff is filling for Mish until August 31st)
Russell 2000 (IWM) Key level to break above is 158, the 160 is resistance area and 153 key support.
Dow (DIA) Fourth consolidation day. 270 now pivotal support
Nasdaq (QQQ) New highs. 260 is key support level and a trendline.
TLT (iShares 20+ Year Treasuries) First up day in the last 7 162 next big support.
Every day you'll be prepared to trade with: