S&P 500 (SPY)
Stocks pieced together a solid day and what was best of all was that both the Rusell 2000 and the Biotech XBI gave a solid bounce at crucial support levels. Does that mean everything is fine and dandy for Monday? Not sure about that, but it is undoubtedly better than the alternative.
First and foremost the S&P 500 has now filled the gap at 2,891, and that should set up a much better week of April 22.
The Russell fell briefly below support at 1565 but managed to reclaim it by days end.
Meanwhile, the XBI had a that solid bounce off of support around $82.
Well, I think square has broken down, falling below support of the descending triangle — it setup up a further drop to around $68 and perhaps as low as $65.50.
Skyworks fell back to $90 and could drop back to support around $88 after failing at resistance at $93. The longer-term trend is still higher.
JD.com looks like it is getting ready to make its next big move higher with $35 as the target.
Microsoft continues to go, and I still think $127 is in its future.
In the meantime, enjoy the long weekend!
This article first appeared on Mott Capital.
Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.