Can Stocks Rally Even As Banks Near Major Inflection Point

Can Stocks Rally Even As Banks Near Major Inflection Point

Today is Wednesday, January 16

Recap of International Trading:

  • Hong Kong Hang Seng Index + 0.27%
  • Japan – 0.55%
  • China Shanghai Comp. +0%
  • UK FTSE – 0.64%
  • Dax -0.16%

S&P 500 (SPY)

Stocks will try to advance for the second day in a row. S&P 500 faces a level of resistance around 2,630.  That is the defining level in many ways which will determine if the market can continue to rise or we see a rather sharp pullback. 2,630 was the level the S&P 500 fell below on December 14 that sent us on that steep path lower.

S&P 500, spx

Russell 2000 (IWM)

The Russell 2000 is also approaching a resistance level at 1,455.

russell 2000

Bank of America (BAC)

Bank of America is rising in the pre-market after the company beat fourth quarter results on both the top and bottom. It is approaching our resistance level of $28.

bank of america

Goldman Sachs (GS)

Goldman Sachs reported results that topped both the top and bottom lines and the stock is jumping on the news. The stock is jumping over $183, and that could lead to the start of something more.

goldman, gs

Banks

All of the banks seem to be quickly approaching an inflection point. With downtrends that seem like that may not be easy to break on the first attempt. I would not be surprised if the group saw a pullback over the next few days.  Let’s wait and see.

The BKX bank index is quickly approaching a significant level of resistance at 94.

bank index, bkx

Freeport (FCX)

Freeport McMoran is nearing a potential break out should it rise above $11.85. The next level to watch for is $13.80.

freeport, fcx

Netflix (NFLX)

Netflix will continue to be a focus stock today. The company reports results tomorrow after the close. The shares are trading around resistance at $355, and should the price rise above $360; the stock could rise to around $380.

netflix, nflx

Roku

So that nobody feels left out, we can mention Roku, I got a couple of request on the stock late last night for an update. Nothing new here. I still $34 in the stock’s future.

roku

-Mike

Photo From Flickr

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