Here's Why The Stock Market May Jump on March 29

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Michael Kramer owns SPY Calls

S&P 500 (SPY)

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Stocks continue to churn but have this underlying bid that seems too hard to ignore. Again the sellers came in force by mid-morning pushing the S&P 500 lower to around 2,798. But still, the buyers stepped in defended the support level and managed to push higher. Now the S&P 500 appears to be gearing up for a big break out tomorrow, and perhaps finally pushing the index towards filling the gap at 2,850.

Russell 2000

The Russell 2000 is also suggesting a break out is on the way as it approaches a technical resistance level at 1,535. A break out sends the stock even higher towards 1,562.

Housing Index

The housing index is also nearing a big break out should it rise above 296. It may result in a move to around 315. Please don’t forget out important this index is as a gauge for the general direction of the broader market.

Netflix (NFLX)

Netflix has been trying to break out but has been stuck below $355. If the stock can ever get over $355, it has room to move back to $378.

Tesla (TSLA)

Tesla continues to move higher off its recent lows. I continue to think the stock can move back towards $298.50. By the way, the Bloomberg Model 3 tracker is not suggesting that the company is making over 6,000 of them a week. Don’t forget we get delivery numbers by March 3.

That’s it. It turns out I have more than a cold, but a case of Bronchitis. No commentary tomorrow, back sometime this weekend.

-Mike

Michael Kramer publishes independent macro and options research read across 10+ platforms and by institutional desks. For research syndication, licensing, or consulting inquiries, visit michaeljkramer.com.

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Here’s Why The Stock Market May Jump on March 29