Market Analysis (15 April’21)

The Dow Jones Industrial Average closed above 34000 for the first time Thursday after strong earnings and upbeat economic data sent stocks climbing. The S&P 500 also notched a record close, its 22nd of the year. A powerful rally has pushed both indexes up 11% in 2021, and many investors believe the rollout of Covid-19 vaccines and plentiful government spending mean stocks have room to keep rising.

TREND ANALYSIS

Based on the Heikin Ashi charts, all four indices are currently in their respective UPTRENDS on the daily, weekly and monthly timeframes. The Dow Jones, S&P500 and Nasdaq have all recorded their new all time highs during the last several sessions, while the Russell index continues to consolidate 4%-5% below its own ATHs.

Heikin Ashi Charts — Daily Timeframe

Heikin Ashi Charts — Weekly Timeframe

Heikin Ashi Charts — Monthly Timeframe

Big Bullish Bet on S&P500

A large institutional trader expects S&P500 to continue marching higher during the next several months. The trader opened a $280m synthetic long position on SPY today at 08:11am PST by purchasing 13000 of 18 June’21 $310 calls and selling the sane number of 18 June’21 $310 puts.

SPY, Options Time and Sales

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