A Spring Stalemate

Given the confluence of many factors, including all markets closed tomorrow for Good Friday coupled with schools around the country on spring recess this entire week, this is actually one of the slower weeks of the year for stocks.

On the first weekly chart, below, the bottom pane showing weekly volume for the QQQ (ETF for the top 100 Nasdaq stocks) illustrates as much, given the fairly slow volume pace we expect to see by the time the closing bell rings today to close out the week. 

However, as one of our Members, @astruzynski, noted, the chips (on the second weekly chart of the SMH ETF) have seen surging sell volume all week. Despite today's bounce on the back of the AAOI news, the sector is still below its 50-day simple moving average (on a daily chart) for the first time since last year.

Also note the IWM and SPY are below their 50-day moving averages, too, despite the broad market taking some early cues today from the banks, namely C and JPM, reversing higher even a WFC slumps. 

Simply put, this market is looking like a bit of a stalemate into a long holiday weekend. Against the backdrop of fast-paced geopolitical headlines, that does not equate to much of a risk-taking setup. To be sure, there are several quality charts we are highlighting and tracking for Members. 

But I would prefer to be more aggressively long into breakout moves higher as opposed to stick saves at support on the banks and small caps, especially at support levels which have already been probed numerous times in recent weeks.