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Tags: stock markets | major indexes | exchange-traded funds
OPINION

Looking at Retracements on SPY, QQQ, IWM & TLT

Looking at Retracements on SPY, QQQ, IWM & TLT
(AP)

Geoff Garbacz By Wednesday, 16 August 2023 03:26 PM EDT Current | Bio | Archive

Stocks have been selling off since the end of July. This action is the first decent selling we have seen since the March low.

As such, it makes sense to look at the retracements on the major stock index ETFs as well as the major bond ETF, TLT.

Picture1.jpg

The S&P 500 has been higher for five months since the March low. Therefore, a pullback is nothing too unusual. We like to use Fibonacci Retracement Levels. The first test is the 38.2% retracement of the move from the March low. It has yet to be tested but should be watched closely.

Picture2.jpg

For the NASDAQ 100 we used a different tracking point on the retracement, the April low. Like SPY the QQQ has more downside before hitting its 38.2% retracement.

Picture3.jpg

The Russell 2000 via IWM is closest to its 38.2% retracement. As such, it is also the most oversold. The ability to hold above $187.28 after a test that could happen today will be key to avoiding further downside on IWM.

Picture4.jpg

The retracement we used on the 20 Year Treasury ETF, TLT, is weekly. Key is holding the low from last October. A break of $92.82 could send yields to a new high.

We will revisit this next week and see how the price action is dealing with these levels.

_________________

Geoff Garbacz is a principal at Quantitative Partners, Inc. and works with several independent research firms that work with buyside clients, financial advisors and institutional investors.

© 2024 Newsmax Finance. All rights reserved.


GeoffGarbacz
Stocks have been selling off since the end of July. This action is the first decent selling we have seen since the March low.As such, it makes sense to look at the retracements on the major stock index ETFs as well as the major bond ETF, TLT.
stock markets, major indexes, exchange-traded funds
245
2023-26-16
Wednesday, 16 August 2023 03:26 PM
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