Don’t Look Now Bears Stocks May Finally Be Breaking Out

Stocks had a solid day on September 4 with the S&P 500 rising by over 1%, and rising to around 2937. The index is banging on the door nearing a potentially big break out and taking out the August highs.

There has been a clear uptrend that has now formed, along with a bullish continuation pattern known as an ascending triangle. It is setting up the potential for the index to rise to around 2950. Additionally, the region around 2935, should offer strong support for the index going forward. As what was resistance becomes support.

S&P 500, spx

S&P 500, spx

US/German Spreads

The US/German 10-year spreads is falling again, and is down to around 2.14%. I still think it will fall to around 2%.

yield spread

yield spread

That will help to get the dollar moving lower.

dollar, dxy

dollar, dxy

Semis (SMH)

The Semiconductor SMH ETF did break out today, rising above resistance at $114.60.  It sets up the potential move higher towards $120.

semis, smh

semis, smh

Square (SQ)

Today, I wrote a bearish article on Square. I have seen some bearish options activity in the name recently. The technical chart is looking very weak too.

sq, square

sq, square

Tesla (TSLAWealth Strength IndexTSLA is Extremely Up and trending Up)

Tesla fell today on news that sales in August were weak, according to an article on InsideEV’s. The data was for US sales, so it’s hard to say what it means for the rest of the markets it sells in. At this point, my view doesn’t change, and I think it could rise to around $253.

tesla, tsla

tesla, tsla

Intel (INTCWealth Strength IndexINTC is Moderately Flat and trending Up)

Intel had a big day rising over 4%. Now it is at resistance at $49; the next move higher sends the stock to $50.70.

Intel, intc

Intel, intc

Twitter (TWTRWealth Strength IndexTWTR is Extremely Down and trending Down)

Twitter had a good day, rising over 3%. I still think the stock increases to around $46. I had seen bullish betting in the stock last week.

twtr, twitter

twtr, twitter

Visa (V)

Visa is knocking on the door of a breakout too. The chart looks very similar to the S&P 500. It sets up a potential rise to around $189.50.

Visa, v

Visa, v

That is all.

-Mike

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