Stocks May Have Just Broken Out, Did Anyone Notice?

S&P 500 (SPY)

The S&P 500 managed to pull itself back together finishing back above 3,000, rising by 0.70 basis points. It now appears that the index has survived what could have been a steeper pullback. The S&P 500 managed to rise above the downtrend and resistance at 3,000. Additionally, it looks as if a double bottom in the chart has formed, which could result in an advance to 3040 to 3050.

S&P 500, spx

S&P 500, spx

Russell 2000 (IWM)

It looks like a falling wedge pattern formed in the Russell 2000 as well.  For some reason, I didn’t see it sooner. I don’t know; I should have. Resistance for the Russell moves up to 1565 for now.

Russell, 2000

Russell, 2000

What I find interesting about the market is that times when pullbacks set up, they appear to be very shallow, and the critical support levels seem to hold very well. It is very impressive; it would suggest that this is a solid equity market.

Regardless it is a big week for markets. I talked about why the Fed may be forced to cut rates by 50 bps in today’s premium video. It Is A Big Week For The Markets.

Biogen (BIIBWealth Strength IndexAAPL is Extremely Up and trending Up)

Biogen had a great day following results. But notice where the stock stop rising. Yes, right at resistance.  For now, $245 has been a pretty tricky resistance level for the stock. A break out sets up a move to $280.

biogen, biib

biogen, biib

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

Amazon is still trending lower, and I’ll admit it is uncomfortable to say the stock will fall in the weeks following results. But I call as I see it, and for now, I don’t see anything to suggest I should change my view. I certainly feel like many are routing for me to be wrong on this one.

Amazon, amzn

Amazon, amzn

JDWealth Strength IndexAAPL is Extremely Up and trending Up (JDWealth Strength IndexAAPL is Extremely Up and trending Up)

It looks like JDWealth Strength IndexAAPL is Extremely Up and trending Up.com may be finally getting itself moving higher. The stock finally got over resistance today at $31.50, rising to $31.85. I have been looking for this one to rise to around $34.85 since the beginning of July.

jd.com

jd.com

SNAP (SNAP)

SNAP reported results, and they look good. It crushed revenue expectations; and reported a smaller than expected loss and strong daily active users. Now we know why investors were so bulled up on this stock in recent weeks. Unfortunately, my last call on Snap went sour. I thought the stock would fall following results, as of this evening that analysis looks wrong. An increase above $17, push it to $18.50

snap

snap

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

Well Nvidia, finally made to $178. I will have to look closer at it now, to see what happens next.

nvidia, nvda

nvidia, nvda

Ok, that’s it. Feeling a little off today, maybe I need to go to bed earlier.

-Mike

This article first appeared on Mott Capital.

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