Stocks Fall on October 7, But That May Be About To Change Very Soon

S&P 500 (SPY)

Stocks didn’t have a great day, with the S&P 500 falling by 50 bps. It had been trading roughly flat until about 2 pm. That was when some headline on trade came across, that got the market moving lower.

Overall, the decline wasn’t terrible, with the index falling to the support region around 2935. The index is right on the uptrend, and it will be essential tomorrow to see the index rise and bounce off this support region. A drop below 2935 probably sets us up to fill the gap down at 2910. Certainly not what I would want, but tomorrow will only be Tuesday.

Despite the negative day, I did observe some exciting options activity for the SPY. I broke it down in a video for paying subscribers. Options Bets Suggest S&P 500 Rise To 3,100 By Year-End

S&P 500, spy

S&P 500, spy

 

Financials (XLF)

The financials stocks are seeing some bearish betting taking place, and the chart doesn’t look great.

 

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

I talked about Tesla today in the mid-day update and noted that I thought the stock could fill the gap back to $242.  We got halfway there today. Stocks Look Solid Despite Negative Headlines

tesla, tsla

tesla, tsla

 

Disney (DIS)

Disney broke the downtrend today; now it needs to get over $133 to be on its way back to $142.

disney, dis

disney, dis

 

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

When you look at a chart of Gilead, you can sit and wonder how much longer the stock can go nowhere. Then you realize that a giant, descending triangle has formed. GILDWealth Strength IndexAAPL is Extremely Up and trending Up’s next move will likely be lower at some point in the not to distance future.

gildead, gild

gildead, gild

 

AMD (AMD)

AMD was having a remarkable day until the news around 2 PM on trade. Then stock gave everything back. My outlook remains unchanged.

AMD

AMD

Salesforce (CRM)

Salesforce fell to and bounce off support at $144, and perhaps now it can make its way to $155.

Crm salesforece

Crm salesforece

 

Have a great day!

-Mike

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