Weekly Market Analysis 04/25/21
Markets ended flat in a volatile week and $BTC continued to show weakness. The reports of an increase in the capital gains tax may have contributed to the higher volatility across stocks and cryptocurrencies. Here is the consolidated view:
$SPY (S&P 500)
$SPY consolidated in a tight range this week with a flat close towards the end of the week. The price action shows it consolidating at the top of the up-trending channel. A move lower this week can set it up to test the lower end of the channel.
$QQQ (Technology)
In the last week’s digest we pointed to the RAFA trend and cycle both looking favorable, we continue to expect further upside with 338 level providing support. $QQQ made a new high this week. With the earnings season in full flow, this market could be setup to move much higher.
$IWO (Russell 2000 Growth)
This market has been side ways for a week and ended on a bullish note. Look for further upside this week to $320 level with $305 acting as a good support. RAFA trend scores look favourable.
$ARKK (ARK Innovation ETF)
$ARKK is forming a bullish pattern with good trend scores. A positive move next week can set this up to retest the $135 level.
$BTC
In last week’s analysis post we guided that $BTC price showed high likelihood of testing lower levels and the price action closely followed our hypothesis. RAFA trends have been great to navigate this market and still remain bearish until we see the price moving back above the $50k level. The steep uptrend in $BTC is however broken and it could show sideways action for many weeks in the future.
Sector Performance
Here is a look at how the money flow trends are setting up for various market sectors.
RAFA Daily Top Picks
RAFA models generate daily top picks every day after market close. These stocks are labeled by our models to have the highest probability of next day positive move. We track the next day (% change) movement and update weekly in this digest. For the week RAFA was able to generate 27 winners with 17 losers
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