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May 15, 2019 – Stock Mentions: Alibaba, Salesforce, FedEx, Bank of America, Home Depot
- S&P 500 Future -8.25 points
- 10-Year yields 2.38%
- Oil $60.99
- VIX 18.34
- Dollar Index 97.52
- Shanghai Composite +1.9%
- Hong Kong HSI +0.52%
- Japan Nikkei +0.58%
- South Korea KOSPI +0.53%
- UK FTSE -0.05%
- Germany DAX -0.53%
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- Square Is Now Breaking Down
International Stock Market
The good news is that Asia rallied last night and for the most part, the Shanghai Composite is showing signs of life climbing above resistance at 2,920. It does create the opportunity for a gap fill at 3065 over the coming days.
US Stock Market
S&P 500 (SPY)
The S&P 500 is pointing to a slightly lower opening on May 15, If the current indications hold it will result in 2,836 acting as resistance once again, with the index falling below it to start the day. This region continues to be a battleground for the market, and I would better about the current scenario if the index began moving up and away from this region. When we look at the range for the S&P 500, it continues to be 2,790 to 2,863.
Alibaba is rising following better than expected results and in-line guidance. The stock is testing resistance for now at $183. That will be a crucial level for the stock, should it rise above that price it could be on its way to $188. However, with the current state of tensions and the weakening China yuan, I still think the risk is to the stock falling that seems unlikely. The stock is now falling in the premarket after rising sharply.
The chart for Salesforce doesn’t look appealing at all to me. The stock seems to be on the cusp of a significant move lower. We can see there is a bearish divergence forming in the chart between the RSI trending lower and the stock heading sideways, and I do not like that set up one bit, $148 seems possible.
Bank of America (BAC)
Bank of America doesn’t look good either, and with yields now falling, the banks could be facing more losses. Bank of America could see a decline to around $26.60.
Home Depot (HD)
Home Depot doesn’t look very good either. The stock broke a significant uptrend, and $193.50 is now resistance with the potential for the stock to fall back to $182.50.
FedEx stock is also showing signs of stress, with a potential decline to $166.
Until tonight, have a great day.
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. may 15