Biotech and Russell Bounce Off Critical Support Levels

Biotech and Russell Bounce Off Critical Support Levels

This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.

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Michael Kramer and the clients of Mott Captial own Microsoft, Skyworks

S&P 500 (SPY)

Retail sales came in at 1.6% for March better than estimates of 0.8%. Also, GDPNow ticked up 2.8% for the second quarter from 2.3%. But on this over the weekend.

Stocks pieced together a solid day and what was best of all was that both the Rusell 2000 and the Biotech XBI gave a solid bounce at crucial support levels. Does that mean everything is fine and dandy for Monday? Not sure about that, but it is undoubtedly better than the alternative.

First and foremost the S&P 500 has now filled the gap at 2,891, and that should set up a much better week of April 22.

S&P 500, spy

Russell (IWM)

The Russell fell briefly below support at 1565 but managed to reclaim it by days end.

russell

Biotech (XBI)

Meanwhile, the XBI had a that solid bounce off of support around $82.

biotech, xbi

Square (SQ)

Well, I think square has broken down, falling below support of the descending triangle — it setup up a further drop to around $68 and perhaps as low as $65.50.

https://www.tradingview.com/x/Ml8gytA2/

Skyworks (SWKS)

Skyworks fell back to $90 and could drop back to support around $88 after failing at resistance at $93. The longer-term trend is still higher.

skyworks, swks

JD (JD)

JD.com looks like it is getting ready to make its next big move higher with $35 as the target.

jd

Microsoft (MSFT)

Microsoft continues to go, and I still think $127 is in its future.

msft,

In the meantime, enjoy the long weekend!

-Mike

Photo from Flickr

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