Tuesday’s market action was sluggish at best. Of the four major indices, the NASDAQ 100 Invesco QQQ Trust (NASDAQ:QQQ) made the largest gain, ending +0.45% on the day.
Yesterday’s average daily volume in the QQQs also took a hit with 27,800,000 shares traded compared to the 40,300,000 average.
But, while the stock market slowed down for the day, the crypto space was heating up.
Since Sunday night, the total crypto market-cap has increased roughly 20%. The money flowing into the space comes after Bitcoin's (BTC) recent dip under 30k. As of writing, BTC was trading around 36k.
Some are saying BTC’s recent bottom was the low before a large rally. However, from a technical side, BTC faces a fair amount of resistance coming in at 40-41k. If it can clear and hold this price level, this would confirm a breakout over a key consolidation area.
Recently, we identified the tech sector as the strongest in the stock market from a momentum and price standpoint, compared to many other key sectors that are waning in momentum.
With that said, using our proprietary Real Motion indicator on BTC shows that it could be getting ready to break over its 50-period moving average in RM.
This means if both RM and price can break over their 50-DMA, they will confirm that price and momentum agree. If momentum can hold and BTC can break over 41k, this could be the next rally crypto investors are looking for.
ETF Summary
- S&P 500 (SPY) Consolidation Doji day.
- Russell 2000 (IWM) Struggling with resistance at 234. Held over the 10-DMA at 228.67.
- Dow (DIA) 341.82 pivotal.
- NASDAQ (QQQ) New highs.
- KRE (Regional Banks) 63.63 support. 68 choppy area.
- SMH (Semiconductors) New highs.
- IYT (Transportation) 254.65 support.
- IBB (Biotechnology) 159 support area.
- XRT (Retail) 97 pivotal area. Like to see this stay over 96.15.
- Junk Bonds (VXX) 109.57 - 109.65 support.
- XLU (Utilities) Sitting on 63.30 support.
- SLV (Silver) 23.84 pivotal area.
- VBK (Small Cap Growth ETF) 292.96 resistance level.
- TLT (iShares 20+ Year Treasuries) 140 support. 146 resistance.
- USD (Dollar) 91.50 support. 92.40 resistance.
- DBA (Agriculture) 18.39 gap to fill.
- GLD (Gold Trust) Watching for reversal patterns.