Weekly Market Analysis

Aug 8th 2021

The indices finished the week on a positive note. Bitcoin and ethereum both saw significant gains, with bitcoin closing up more than 16% and ethereum up 26%. The much-anticipated infrastructure bill is expected to clarify crypto tax reporting and possibly define near-term volatility.

$SPY (S&P 500)

$SPY continues to remain in a healthy uptrend. More buying followed the recent pullbacks, keeping the price above the key trendline. Here, the RAFA risk/reward scores are healthy and points to more upside. If we see a downtrend this week, the key trendline will be the one to watch.

$QQQ (Technology)

$QQQ continually rising, still in an upward trend. The RAFA indicators are still bullish, and the next major resistance would be the red trendline around $374.

$IWO (Russell 2000 Growth)

$IWO continues to trade in a sideways fashion. Despite the fact that the short-term trend is positive, this market is about to test a key trendline. It will be a crucial test in determining the growth stocks’ longer-term direction. If the market fails to break above the trendline, it may set this up for some downside price action.

$BTC

After months of downtrending, the price of bitcoin ($BTC) has recently entered a longer-term uptrend. A key trendline (shown in green) was broken and tested again to the upside. This demonstrates the market’s strength. However, the price is approaching the $45K resistance area, and the price action here may cool off before the next upward move. The RAFA trend and risk scores are still bullish.

Sector Performance

Energy continued to show weakness. Technology is the strongest performing on a monthly time frame with Communication Services showing some positive momentum. Here’s a look at the performance over multiple time frames.

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