Stocks May Be Getting Ready To Take Thier Next Leg Higher

Boring, perhaps. Frustrating, yes. It was a frustrating day. There were a bunch of the indexes just stuck in the mud. Maybe the buyers are tired, or perhaps they are thinning out. Whatever the case, the sellers seemed to be able to keep a lid on things holding key levels across many indexes.

S&P 500 (SPY)

The S&P 500 was one of those indexes just hanging around resistance in the 2,880 to 2,885 zone on June 12, not able to crack 2880. I think I redrew the chart about five times throughout the day. Each time in search of the trend. Right now, it is pretty simple because that trend is lower.

I have settled on this trading channel. It could be the start of a bull flag, maybe. It’d be great if it were, it would mean the S&P 500 is on pace to rise to 3,040. As of right now, it may only be wishful thinking.

However, if it is the case that it is a bull flag forming there are signs that it could break out tomorrow, based on the Russell chart below.

spx, s&p 500 6/12/19

spx, s&p 500 6/12/19

NASDAQ (QQQ)

We can see there is a very similar pattern that as formed in the NASDAQ.

nasdaq, june 12

nasdaq, june 12

Semis (SMH)

I think the Semis may be secretly sending us a black swan message. Like the bond markets two weeks ago that was sending the smoke signal of an imminent recession. What do you think? LOL. Oh, I crack myself up sometimes. Get it.

Well, maybe it looks more like a bird or duck then a swan. Anyway. I’m still laughing. Hey, you have to fun if you expect to have any longevity in this business.

Russell (IWM)

The Russell got held up on June 12 at 1521, and this index has to break out. You can see the setup —

uptrend+breaking of downtrend = breakout above 1,521.

Let us hope it does on June 13.

russell, rut

russell, rut

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

Apple is trying to break out at $195, and there is a good chance that happens tomorrow if we can get that break out on the indexes. Or better yet, maybe AAPLWealth Strength IndexAAPL is Extremely Up and trending Up leads that breakout! Now that’s a thought!

apple, aapl,

apple, aapl,

Broadcom (AVGOWealth Strength IndexAVGO is Moderately Up and trending Up)

Broadcom reports results on June 13, and what they say is pretty essential on several levels. AVGOWealth Strength IndexAVGO is Moderately Up and trending Up filled the gap fast then I thought. It tough to say where AVGOWealth Strength IndexAVGO is Moderately Up and trending Up goes after earnings now.  I’m thinking the momentum favors AVGOWealth Strength IndexAVGO is Moderately Up and trending Up rising.

avgo

avgo

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

Tesla couldn’t get over $225 on June 12, but I think it shall. The trends are shifting, and momentum is shifting. We will see what happens in the next day or two. There may even be a “leaked” email or two over the two weeks to help, who knows! The quarter end push is quickly approaching.

tesla, tsla june 12

tesla, tsla june 12

Square (SQ)

Square looks like it is getting ready to go to $75. It has consolidated the last two days nicely.

sq, square june 12

sq, square june 12

Snap (SNAP)

Snap is starting to see some bullish momentum and it could be on its way to $16, you can read more in this free article I wrote today. Snap’s Stock May Climb Even Highersnap, june 12

snap, june 12

Have a good night!

This article first appeared on Mott Capital.

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. TSLAWealth Strength IndexTSLA is Extremely Up and trending Up June 12