Here’s Why Stocks Are About To Go On A Run Higher

Stocks had another solid day, with the S&P 500 rising by 63 basis points to close at 2,937. It places the index right at resistance and right at the downtrend, a significant level. Based on the pattern in the chart, it would indicate to me that the stock market is likely to break above the downtrend tomorrow and resistance and continue higher, pushing back to 2985 and likely beyond.

Call me a perma-bull if you want. But remember who the guy was on September 21 that called the 5% pullback. Yeah, that was me.

S&P 500, spy

S&P 500, spy

Semis (SMH)

Semiconductor continues to flirt with a breakout but has been unable to rise above resistance at $120.75.

Semis, smh

Semis, smh

Consumer (XLY)

The consumer discretionaries appears to have broken a downtrend. It means the group could be heading higher from here after finding support around $118.

xly

xly

Netflix (NFLXWealth Strength IndexAAPL is Extremely Up and trending Up)

Netflix had an intense day rising by nearly 5%. The stock doesn’t trade as if it is about to report a disastrous quarter next week. But then again, it may merely be filling the gap at $284 that exists.

netflix, nflx

netflix, nflx

Apple (AAPLWealth Strength IndexAAPL is Extremely Up and trending Up)

Apple continues to move higher, and it seems that a new all-time is just around the corner, maybe even $240.

aapl, apple

aapl, apple

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

Nvidia appears to be getting closer and closer to breaking out at $188. The pattern suggests it does break out.

nvidia, nvda

nvidia, nvda

Roku (ROKU)

Roku failed at its first attempt at $122 today. Now it is making a second attempt in the after-hours following an upgrade by RBC to outperform from sector perform.  It will be a big test for the stock tomorrow, with a lot on the line.

roku

roku

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

Intel looks as if it is breaking out too and may finally be on its way back to $53.60.

intel, intc

intel, intc

Have a great night!

-Mike

Source: 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.