- Stock market indices SPY and QQQ declined by 0.90% this week through Thursday.
- Investor optimism remains unchanged, while bearish sentiment decreased according to the American Association of Individual Investors.
- Support and resistance levels were tested for SPY, with technical signals indicating ongoing corrections in the market.
- Bitcoin fell 5% this week, showing signs of a deeper decline based on technical indicators.
- The PCE inflation report prompted a slight early rally on Friday for stocks, but Bitcoin remains lower.
The stock market experienced declines this week, with both the Spyder Trust (SPY) and the Invesco QQQ Trust (QQQ) falling by 0.90% ahead of Friday’s trading session and the release of the Personal Consumption Expenditures (PCE) inflation report. Traders also noted that these indices have closed lower for three consecutive days, prompting concerns about ongoing volatility.
Recent data from the American Association of Individual Investors (AAII) shows the percentage of bullish investors stayed flat at 41.7%. Meanwhile, the percentage of bearish investors fell from 42.2% last week to 39.2%, indicating some improvement in investor sentiment.
Charts for the SPY indicate the 20-day Exponential Moving Average (EMA) at $654.49 was tested, and daily support sits around $650. The article cites technical analysis tools such as the daily starc- band. Major support stands at $607, with a significant resistance level at $666.28 briefly surpassed earlier in the week. The S&P 500 advance/decline line ended Thursday under its EMA, reflecting continued corrective action, though weekly and monthly indicators remain positive.
AAII’s bull%-bear% index reached extremely low bullish sentiment earlier in the year, falling below -30 as SPY bottomed in March through May. The report stated, “it reached -51.4% on March 5, 2009, which was the lowest reading since the recession of 1990 when it reached -54%.” The index has since moved up to 2.5%.
For Bitcoin, the BTC/USD pair hit new highs in 2025, reaching resistance near $124,723 in August. The cryptocurrency then dropped to its 20-week EMA at $109,559, with a lower target near $97,565. Based on the MACDs and MACD-His indicators—which track momentum and trend—Bearish divergences suggest a greater chance of continued declines.
By early Friday, stock prices rose slightly following the PCE inflation report. However, Bitcoin is still down 5% this week, and technical analysis expects rallies near $111,000–$113,000 may not hold.
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