Stocks Continue To Rally and Yes, There May Be More To Come

S&P 500 (SPY)

The stock market continued to rally, and the good news is that I think it shall continue. Again, one has to wonder just how big of a part tariffs ever played in the stock market sell-off. The tone out of President Trump this morning in his dial-in phone call to CNBC did not sound as if everything was going great with China. I don’t know that we can call the near 5.5% rally in the S&P 500 since last Tuesday anything other than Fed-related. It certainly isn’t China-related that is for sure. Consider that since June 4 the Shanghai composite is also down over 2%. It also was not a coincidence that the market sold off following the Fed’s last meeting on May 1.

I think most of the steep declines we saw in May had potentially a lot more to do with the Fed than with China or tariffs.  Again, I think tariffs will have a minimal impact on the US economy; I can’t say the same for China.

The only thing I’m left wondering at the moment is the path which the S&P 500 will take. At this point, I’m not sure, but I do think that the S&P 500 is heading towards 2,915. I talk about it more in today’s video commentary: Stock Market Continues To Power Higher

Of course, there is always the risk of that unfilled gap at 2,850 getting filled too, so let’s not get overconfident just yet.

S&P 500, spx

S&P 500, spx

Amazon (AMZNWealth Strength IndexAAPL is Extremely Up and trending Up)

Amazon has managed to lay my fears to rest and has risen above resistance at $1850 and the downtrend. It sets up a potential rise back to $1,960

amazon, amzn

amazon, amzn

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

Tesla is also on the rise after breaking above resistance at $205 and sets up the potential for a move higher to $225.

tesla, tsla

tesla, tsla

Gilead (GILDWealth Strength IndexAAPL is Extremely Up and trending Up)

Gilead looks like it about to take its next leg lower, towards $56.

gilead, gild

gilead, gild

Qualcomm (QCOMWealth Strength IndexAAPL is Extremely Up and trending Up)

Qualcomm is challenging resistance at $70. The RSI is now trending higher and I think that sets this stock up to retest to fill the gap at $76.50

qualcomm, qcom

qualcomm, qcom

Square (SQ)

I have reserved my comments on Square because I have had a good sense of the trend. But it seems the stock is breaking out and could test resistance at $75.

square, sq

square, sq

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

For now, Nvidia has hit resistance around $150 and failed; we will see what happens tomorrow before making the next call.

nvidia, nvda

nvidia, nvda

Beyond Meat (BYND)

I wrote up a story on Beyond Meat today; I think the stock is poised for large drop to around $100. You can that RSI has turned lower, and the stock appears to be forming a descending triangle, plus look at that large gap to be filled. Short Sellers May Be Piling Into Beyond Meat

beyond meat

beyond meat

That’s all for today.

This article first appeared on Mott Capital.

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