Pivotal Price Levels The Market Must Hold Or Clear This Week

The past week’s earnings have set the market stage with large tech companies such as Apple (NASDAQ:AAPL), Google (NASDAQ:GOOGL), and Microsoft (NASDAQ:MSFT) beating earnings estimates.

With that said, prices looked to be waning not only in the large tech companies, but in the overall market. This could have been related to other factors in the market that have taken the spotlight, from increasing inflation, to the rise in COVID-19 worries as the Delta variant spreads.

Now that the pandemic recovery and the back-to-normal trend sit further down the road, the economy and investor’s bullish sentiment could also be weakening.

However, since the market has proven its resilience before, let’s look at the key price levels we should watch as we move into the coming week.

Starting with the NASDAQ 100, (QQQ), it will need to hold over its low from July 27 at $360. Since the QQQ is a teach-heavy index the 27th correlates back to big tech earnings from Microsoft, Google, and Apple which were reported that same day.

Additionally, the S&P 500 (SPY) and the small-cap Russell 2000 (IWM) share a similar support level on the 27th.

For the Dow (DIA), clear support is hard to find. We would like to see DIA hold over last week’s low at $348.71, however, since that price level is close, it could easily break. After that, the next area of support for the DIA is the 50-Day moving average at $345.22.

When it comes to resistance, because the SPY and QQQ have recently broken to new highs, they do not have any large resistance lingering nearby.

On the other hand, IWM and DIA are both in resistance zones as IWM sits in the middle of a very choppy range dating back multiple months while the DIA is having trouble clearing resistance set from the high in May at $351.

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