From Take'em Up Tuesday To Turn Around Tuesday
Stocks rose sharply to start April 7, but the gains couldn't hold, and by days end, the market finished lower.

From Take’em Up Tuesday To Turn Around Tuesday

APRIL 7, 2020

Stocks – DIS, SBUX, NVDA, ZM

Marco – SPY

Mike’s Reading The Markets Premium Content $35/Month or $300/Year

Take’em Up Tuesday became Turn Around Tuesday pretty quickly. I think the S&P 500 rose to around 2,760 and finished at 2,660, a nice intraday 3.5% plunge. Again, these rallies as sharp as they maybe can not be trusted. I don’t see any other way to put it. These are short-term rallies, in a longer-term downtrend. 

With earnings estimates likely only heading lower, the S&P 500 is getting somewhat expensive at current levels. I don’t see how the current earnings picture will continue to support the S&P 500 at its current level.  Premium content – Stocks Set To Rally, But Options Still Betting It Doesn’t Last

S&P 500 (SPY)

The index rose right to downtrend at 2,760, in what appears to now be a giant broadening wedge pattern with my short-term target of roughly 2,500. Premium Content – Finishing Phase 2, Entering Phase 3?

S&P 500 , spy

Disney (DIS)

Disney looks like it may have doubled topped on the intraday chart and that likely means it is heading back to the lows around $78. Disney’s business is getting hit from every angle currently from the virus. 

Disney, dis

Nvidia (NVDA)

Nvidia reversed lower, and now it looks like it can move to that gap around $245. 

nvidia, nvda

Starbucks (SBUX)

Starbucks has a similar pattern, and I think it results in a similar outcome with a drop towards $60. 

starbucks, sbux

Zoom (ZM)

Zoom is getting closer to $105; maybe it gets there tomorrow. 

zoom, zm

Have a good day

-Mike

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