Stocks rose modestly on May 24, truthfully I’m somewhat surprised, but then again 15 basis points are not much to write home about. Still, the one takeaway is that 2,836 managed to hold as resistance. Certainly not a surprise, I had noted that early today that 2,836 would act as such.
However, if you take a step back, what is very constructive is that the S&P 500 did not make a new low this week. With the three day weekend it could have very easily sold off even harder yesterday and today pushing the index to lower levels. The opportunity for the bears to break the market was surely there, and the fact that the market has held is a big positive. It is a major win for the bulls in my book, and I think this gives the market a place to work higher from. It may also be setting up a double bottom.
I’d hate to say it, but it looks the yuan is getting ready to take its next leg lower vs. the dollar, probably back $6.95.
Semis were generally weaker today, but Intel managed to have its second day of gains. While it was up only fractionally, it is again worth monitoring more closely. Trade war or not, Intel was the Semi that got the whole semi sell-off rolling. The chart is starting to look better and suggesting the stock challenges $46 next week. (premium article: Chip Data Suggests A Bottom Is Near)
Roku (ROKU )
Roku also had a solid day and continues to look like it may be heading to $103. Wow.
Square doesn’t look that great to me; the shares are struggling to get over $65.50, I think this one is going lower maybe $56. But we will watch and wait.
Back at some point over the weekend. Not sure when! Enjoy the long weekend!
This article first appeared on Mott Capital.
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