Nvidia, Micron, Apple, Amazon Showing Serious Cracks
Despite all the market turmoil, for which the reason seems to change on a daily basis, the S&P 500 is only down 1.38 percent on the year. I think that is the more important thing to focus on, and not the daily swings of 2 percent. Becuase at the end of the day despite all the stock market volatility, the stock market has virtually gone nowhere!
So while the reasons for the market going lower seem to change, some things have held constant, until today, and those minor changes have caught my attention.
First, the XLK breakout from the other day is being severely tested, with the downtrend now in play again.
The IBB is now below the February lows.
The XLF failed in a big way at resistance, around $28.
Nvidia broke support at $218 and closed around $214.50, and for the first time in all the chaos shares look at serious risk of falling towards $200.
Micron opened lower and retook $49.75, and like Nvidia, it gave way and closed well below support, and that is a bad sign too, with the potential for a further decline towards $46.75.
Amazon failed twice at resistance now around $1440 level, and I continue to think this one trades lower.
Apple closed below support at $169.
Obviously, the market is far more significant than these four stocks, and at this point, it seems hard to predict what the potential next hurdle or hiccup comes in the markets way over the next week. It seems that everytime a bit of positive momentum builds it is meet with some obstacle that sucks the energy out of it. From “trade wars,” to Amazon and the Post office, the FED, inflations, and yields. The stock market thus far this year seems like a moving target, and for the first time in about three years, I am having a hard time getting the general trend right, and that is bothering me.
But, the good news comes next Friday when the narrative will change to earnings. The only left to be to determined, will earnings push stock prices higher or will it become just one more thing the market can add to list of worries.
More this weekend.
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