March 23 Is The Do Or Die Moment For The Bulls

Subscribe to receive this FREE daily commentary directly in your email

3/22/22

STOCKS –AMZN, NVDA, HD, FDX,

MACRO – SPY, FDN, DIA

Mike’s Reading The Markets (RTM) Premium Content – $45/MONTH OR $400/YEAR – The First 2-weeks are FREE to try. 

PRICES WILL BE RISING TO $65/MONTH OR $520 ON MARCH 31; START YOUR FREE TRIAL NOW TO LOCK IN THE LOWER RATES. CURRENT MEMBERS UNAFFECTED!!!

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

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. 

Add your email to The Market Chronicles' growing list of daily readers. A FREE market commentary on the trading day's most critical and least apparent events!

Add your email to The Market Chronicles' growing list of daily readers. A FREE market commentary on the trading day's most critical and least apparent events!

Subscribe to receive this FREE daily commentary directly in your email

This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.