From Break Out To Break Down-Not A Good Set Up Short-Term

Stocks had a good day on October 17 rising 35 basis points, that’s the good news. But certainly not the break out I expected, I got it wrong this time. However, I have more bad news. I’m not thrilled with how the chart is setting up. The pop at the open today created an unfavorable setup, which didn’t exist this morning, the dreaded rising wedge. I talked about this today in the midday update. At this point, it something we must pay attention too and must respect. A break of the downtrend and support at 2985 would likely create that gap fill we had been looking for at the beginning of the week, causing a decline to around 2940.

Could it lead to something steeper? Perhaps. But I don’t think that is likely.

Midday Commentary- S&P 500 Doesn’t Seem To Agree With My Bullish Outlook – Stocks Discussed: AMD, BYND, DIS, NFLXWealth Strength IndexAAPL is Extremely Up and trending Up, SPY, TSM, UBER – The first two weeks are free to try, then $35/month or $300/year.

S&P 500, spy

STOCKS

Nvidia (NVDAWealth Strength IndexAAPL is Extremely Up and trending Up)

Nvidia has failed at resistance around $198 a few times, and it looks like it wants to retest support at $188.

nvidia, nvda

UBER (UBER)

UBER continues to move higher, too, and I think $35 is around the corner.

uber

Alphabet (GOOGLWealth Strength IndexAAPL is Extremely Up and trending Up)

Alphabet has very quietly moved back to within reach of its all-time highs. You have to think when this thing breaks out; it has a lot to go up.

alphabet, googl

Intel (INTCWealth Strength IndexAAPL is Extremely Up and trending Up)

Intel still looks fine despite today’s pullback. I think the stock heads higher.

Intel, intc

Beyond Meat (BYND)

Beyond Meat fell below support at $124 and I think the door has now opened to $100. I talked about why in more detail in this free article on SA.  Beyond Meat’s Plunge May Only Be Starting

beyond meat, bynd

Have a good day

-Mike

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