3/22/22

STOCKS –AMZN, NVDA, HD, FDX,

MACRO – SPY, FDN, DIA

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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.

Amazon (AMZN)

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 (NVDA)

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.

FedEx (FDX)

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.

-Mike