Friday Wrap: Chart Art To Help Plan For Next Week

Another week in the books and most major stock indices notched losses for the week. With the quarter-end coming on Monday, this weekend offers an opportunity to take a bigger picture look at the shifting landscape to plan your strategy for the next month and next quarter.

A chart that had many people talking today shows how the S&P 500 has performed during various phases of ‘Quantitative Easing.’ The choppy trading in recent weeks comes into clearer context when overlaid against Fed actions:

S&P and QE update including taper (bored today) $SPY $QQQ $FED http://stks.co/s09RL

— Michael Samhan (@M5amhan) Mar. 28 at 11:02 AM

…and many are suggesting that the choppy action is a precursor to further downside, as the selling simply hasn’t gotten aggressive enough:

We didn't get close to being oversold yet and this bounce is meager at best. Prob more downside $SPY http://stks.co/a0NtI

— SassySPY (@Sassy_SPY) Mar. 28 at 11:34 AM

 

Momentum stocks are certainly suggesting this may be the case. We’ve seen many market darlings that led the indexes up this year get pummeled this week, and $IPO which serves as a proxy for the performance of newly issued shares also got trounced:

$IPO the RED March really shows the momentum sector getting in a nutshell as its an ETF of the freshest of momentum http://stks.co/g0Ria

— Howard Lindzon (@howardlindzon) Mar. 28 at 11:31 AM

 

…and the tech-heavy Nasdaq closed below a major moving average for the first time in over a year!

$NDX $NQ_F Weekly close could be huge here. Hasn't closed below 100 day in over a year. http://stks.co/j0RVH

— Neil Blalock, CMT (@NeilBlalockCMT) Mar. 28 at 12:15 PM

 

…while the small caps index is printing its first negative quarter in the last six!

After 6 positive quarters in a row, small caps are finally painting are red one. $IWM http://stks.co/s09Un

— Ivaylo Ivanhoff (@ivanhoff) Mar. 28 at 01:22 PM

 

Some shifting trends that warrant monitoring going forward are showing themselves in the interest rates space, energy sector, financials, and biotech:

$TLT testing its breakout here. Still looks bullish above 109. http://stks.co/c0Nlu

— Jesse Felder (@jessefelder) Mar. 28 at 11:55 AM


Lots of eyes will be on $xle next week. Can it hold this b/o http://stks.co/j0RVf

— Aaron Jackson (@a_jackson) Mar. 28 at 12:34 PM


wow look at whats happening to one of the strongest cc stocks $ma, $v showing pressure too $axp $dfs http://stks.co/c0Nmb

— NextTrade1122 (@NextTrade1122) Mar. 28 at 12:42 PM


Biotechs are finishing the quarter in green, but what a pullback from the highs. $IBB http://stks.co/i0RWm

— Ivaylo Ivanhoff (@ivanhoff) Mar. 28 at 01:25 PM

 

I know many of you have a full weekend of nursing your busted brackets ahead of you, but make sure to set aside some time to plan your very own ‘Final Four’ of great ideas to profit in the days ahead so you might afford a ticket to the big dance!

~ Sean McLaughlin (@chicagosean)

P.S. Go Gators!!


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