Stocks bounced around on June 17 with the small caps and Biotech leading the charge higher. The communication sector had a solid showing today too. The broader S&P 500 was up, barely, and plenty of opportunities but the buying just wasn’t strong enough to break the resistance level at 2,895. With the Fed meeting this week, we may have to wait until Wednesday to find out what happens next.
S&P 500 (SPY)
The S&P 500 tested resistance at 2,895 on June 17 two times and failed each time. I have been fiddling with trying to find an uptrend today for the S&P. For the moment, I have three points that connect. If the uptrend turns out to be correct, it would indicate that we break above resistance at 2,895 on June 18 by no later than 2 PM. How do you like that precision? As if the Zodiac is telling me the time and the date for the breakout? Oh, I love the foreshadowing, genius.
Russell 2000 (RUT)
The Russell already had an uptrend and an ascending triangle pattern in place, and today’s action continues what we have already seen. The Russell briefly rose above resistance at 1,536, but it could not hold. The Russell’s do or die moment will also come by June 18, but 11:15 or earlier.
The biotech group surged on June 17, following the news Pfizer would buy Array. It was as if Ares, ruled by Mars, the god of War had left the group for dead. The XBI managed to clear resistance at $85.25 and could be on its way to around $88. I went through a pretty in-depth review today, in a premium video. (See: Biotech Jumps Back To Life)
Netflix had a good day following positive comments out of Piper Jaffray. The significant level to watch at this point for NFLXWealth Strength IndexNFLX is Extremely Down and trending Down is at the downtrend, which is currently around $360.
AMD did not have a good day, slipping below support at $29.40 and now risks a decline to $28.50. A week late, but better than never.
So Facebook is starting a cryptocurrency, and the stock rose today on that news, and it could be heading to $194 based on the charts. So I’ll ask you this, how long until Amazon starts one? If anyone should have its own currency its Amazon. What about Google? If cryptocurrencies are this easy to create, then why should they have any value? Just a thought.
Here’s another one: We can’t trust Facebook with our data, but we should trust them with our money? Yeah, that makes a ton of sense.
Do you think we will have to mine through all the Fake news or click on all the Ads to find the currency?
To me, it sounds like a company trying to change the narrative. If it was Tesla doing this, what do you think the commentary would be like? Not good.
I also love how the codename is Libra for now – harmony, and balance? ironic. I wonder how many hours of research and money went to pick that name? Sorry, I think this is a joke. Amazing.
Maybe Amazon’s can be Aries, as it wages war against its retail rivals.
Speaking of Tesla, the stock continues to rebound, albeit it is still down a lot. For now, $225 remains an issue for TSLAWealth Strength IndexTSLA is Extremely Up and trending Up.
Amazon is getting closer to the break out at $1900. Maybe that new crypto can put them over the top. They have Alexa, Aries is a perfect fit.
You just can’t make this crap up.
This article first appeared on Mott Capital.
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