Stocks continue to go nowhere on February 28, but that may be about to come to an end. There is a new pattern on the hourly chart which appears to be a symmetrical triangle. Generally this is a continuation pattern, and in that case, that would mean the stock market is about to rise. A break out occurs if the S&P 500 can rise over 2,800 tomorrow.
The break out up or down will likely happen tomorrow because as you can see the triangle is pretty much at the end of its life, and will cross tomorrow.
The same pattern exists in the NASDAQ.
So we shall now wait and see which way the stocks break tomorrow. But I do expect that whichever way the stock market breaks tomorrow it will be the start of the next trend. Lets hope my instincts are correct and that direction is higher.
Square had a big turnaround today after the algo’s were cleaned up. It is why trading in the after-hours and pre-market can be so dangerous. It was Nvidia just a few weeks ago that gave back nearly all of its after-hours gains during the following days trading session.
What does Square do? It not only recoup all of its losses but gains over 3% on the day. Surging as high as $83. Surprise!
JDWealth Strength IndexJD is Flat and trending Up was another stock that jumped today rising over 6%. The stock peaked at nearly $30 early in the day and pulled back the rest of the day. It resulted in the refilling most of the gap higher in the early session. But this one still has all the signs of a stock that is likely to continue to rise in the coming weeks.
Netflix is not going the way I had intended it would go. Now the stock is falling outside of the rising wedge, and a break below $355, spells trouble, and the potential for a further decline towards $337. Clearly not what I was expecting.
I can’t remember the last time Amazon has traded sideways for this long. The stock has gone nowhere for the past month. Boring! I had thought we get a lift towards $1780, another prediction that has gone sour.
Acadia surged again today. The stock did hit a high of around $26.80 today. I did mention in StockTwits Premium chat that the path higher for Acadia gets harder after $27.
But should it break above $27ish, there is a giant gap to fill up to $31.
Facebook still looks like it heading lower towards that Gap at $148.
Someone asked me about CVS. I will be honest; I have no clue what is going here or why the stock is tanking like this. The chart looks horrible, and it seems to be heading lower towards the $52.
That is going to be it for today!
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.