Screw The Gap – Stocks May Be Heading Back To Their All-Time Highs

MACRO

S&P 500 (SPY)

The stock market decided that filling the gap was a dumb idea and instead went higher on October 15. I would have preferred to have seen the gap get filled today, but that is how it goes it sometimes. The index made it to resistance today at 3,000 and just stopped. The setup in the charts continues to support higher prices overall. It would be a terrible sign if the index can’t make it beyond 3025 this time. First, it creates a downtrend, and second, it creates the potential for a very nasty bearish reversal pattern, a double top. I put together this video today showing you all of the positive trends in the market right now that suggests it continue to rise. Forget The Gap, Stocks Can Continue To Rise

s&P 500 doube top

You can see what I am referring to in the chart above with the first top having been formed in July and the second in late September. I don’t believe that a double top is in the cards for the S&P 500, but we should know the possibility is there.

My expectation is for the S&P 500 to continue to rise and take out 3,025.

STOCKS

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

Nvidia finally got to $198 today, it was a long wait, but eventually, it got there. The gap is filled, and the big question is what comes next. I have been talking about Nvidia the last few days in mid-day commentary.nvidia, nvda

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

Lots of questions among subscribers on Netflix. It is a tough one to call, most of the significant option bets you see on the open interest at $300 are old bets back before October, so it misleading to some degree. The options market is looking for a 10% price swing by the end of this week! Regardless, I think a lot of the bad news has been priced in, and the stock rises above $300 following results. I wrote up a premium article today on SA Market Place, describing in much more detail with audio guide.

netflix, nflx

UBER

UBER had a good day rising to $32. If it can get above resistance at $32, $35.85 seems like a logical next stop.

uber,

Microsoft (MSFTWealth Strength IndexAAPL is Extremely Up and trending Up)

Microsoft is on the cusp of a breakout at $142. I think it does. $153 seems like a reasonable place for it to rise too.

msft, microsoft

Twitter (TWTRWealth Strength IndexAAPL is Extremely Up and trending Up)

The chart for Twitter isn’t looking very strong at the moment. I’m beginning to think it can fall back to $36.50.

twtr, twitter

Until tomorrow

-Mike

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