Market Rebound: Technical Indicators Suggest Bullish Recovery and New Targets for SPY and QQQ

Well, after we posted numerous charts on Friday for our members about a potential bounce back/snap back, that's what we got! We posted $VIX was overbought, $QQQ(QQQ) Invesco QQQ Trust(QQQ) oversold on the daily sto and even the 4 hour charts posted indicated a trend reversal after last week's rout. Perhaps all of this is due to Biden dropping out of the race over weekend and removing some uncertainties out of the market. $SPY(SPY) SPDR S&P 500 ETF Trust(SPY) up over 1% yesterday, Nasdaq advanced 1.8% and $IWM(IWM) iShares Russell 2000 ETF(IWM) continues to hold the 50% retracement at 215.

Below chart we use 4 Hour Stochastics reading to show oscillator at oversold levels:

Above is the daily $VIX $(SVXY) ProShares Short VIX Short-Term Futures ETF(SVXY) Chart indicating overbought conditions.

$NVDA(NVDA) $AMD(AMD) semis a large part of the tech sector regained most losses after Friday. Our upside target on $SPY is 557 this week and we hit 555 at highs today. We are moving our target up to $SPX 5600 this week and we should be beyond this number if PCE data comes in favorable on Friday.

It'll take some work, but $SPY did close above the 20DMA yet $QQQ still remains under the 5/20D averages. As of writing this article, $SPY $QQQ above their respective 5D moving averages. Tech ($QQQ) has some work to do.

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