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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Stocks pushed higher today, but everything stalled out at an exciting point on the indexes, many ETFs, and single stocks. At the same time, several overbought readings are starting to diverge. Remember I said we were likely to see follow-through and consolidation this week, and we shouldn’t turn lower until towards mid-week or later, based on the OPEX pattern. That day could come tomorrow, if all these levels hold. If they don’t hold, then S&P 500 could have about a runway to around 4,650. I suspect they will hold, though.
S&P 500 (SPY)
Starting with the S&P 500, it completed what appears to be a pennant pattern. So one way or another, something will break in a big way tomorrow. There is no more room for this pattern to work. The S&P 500 futures have the same pattern, so that we will have our answer before the opening.
You can see that a similar pattern formed in January, and in that case, the break was lower.
Dow Jones Industrials (DIA)
Also, the Dow Jones Industrial Average moved right back to resistance at 34,800 today, and that is where it stopped. That marks a critical intersection for the Dow. A push above 34,800 leads to another 1,000 point rally. A failure leads to revisiting the lows.
Internet ETF (FDN)
Additionally, the DJ Internet ETF (FDN) also rose right to resistance today at $188.40 and stopped.
On Sunday, I noted that Amazon had to get through a resistance zone of $3,250 to $3,300. Today, the stock stops at $3,310, which falls into that zone.
Nvidia had a big investors day today, and despite all the hype around the event, the stock is still stock stuck at resistance around $268.
You can see the same thing is even present in FedEx.
Home Depot (HD)
The same thing had been present in Home Depot, and if this is a leading indicator of what is to come at the moment, it would suggest that resistance holds firm.
Good Luck tomorrow. Powell very early tomorrow morning.
Mott Capital Management, LLC is a registered investment adviser in the State of New York. 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. Please remember that past performance may not be indicative of future results.