Subscribe to The Free Market Chronicle and join the 2,682 subscribers getting it for FREE!

Something Has Changed In The S&P 500

[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_tweetmeme type=”follow” follow_user=”michaelmottcm” show_followers_count=”true” large_button=”true”][/vc_column][/vc_row] Get This In Your E-Mail Subscribe

Some fascinating things have developed in the markets over the past couple of days. The pattern of gapping lower, filling it, and moving higher has decisively changed. In fact, we noted it just a couple of weeks ago. In fact, our discussion was even picked up in a MarketWatch.com story.

[widget id=”wordads_sidebar_widget-18″]

The chart below shows we have had successive days, where the S&P 500 has gapped lower but has not been able to refill that gap. The rebound in the index has only taken the S&P 500 back to the level of the initial opening level.

[widget id=”wordads_sidebar_widget-18″]

Technology

We are seeing the same thing occurring in the technology sector using the XLK has a proxy.

It would suggest to me there are just not enough buyers in the market, presently to lift the index above the opening level. Perhaps the machines have been reprogramed?

Sign-up for our premium content “Reading The Markets” and a get Two Week Free Trial Period

You can find it on the Seeking Alpha Market Place –

Premium Content: Benefits include the ability to reach out to Mike with questions through a chat room, direct message, or comments.

We will respond to questions in short order and will respond to questions with full-post or video segment, just not one or two-word answers.

Just $40 per Month

GE: Just Not Worth It Anymore

Disney Is Just Too Cheap

Techmagaden

Acadia’s Post Earnings Analysis + OIL Breaks Out

Analysis Of Acadia’s Phase II Data, Plus QCOM/AVGO

NXP Would Benefit From Broadcom Buying Qualcomm

[widget id=”wordads_sidebar_widget-18″]

Discretionary Sector

Looking at the discretionary ETF, one that has recently broken out, the difference becomes apparent. The XLY gapped lower, but the buyers came into the market to completely refill it in the morning and take shares above and beyond by the end of the day.

I believe still that S&P 500, and the technology sector is likely to continue to feel pressure, and continue to drift lower over the next couple of weeks, as we have previously noted.

Tesla

Tesla has it big semi truck event on Thursday night, one that should be interesting. Tesla bulls were able to rally shares yesterday, and despite losses in today’s trading the stock managed to hold support at $310, another positive sign for a bottom getting put in place.

That it for today.

Free Articles Written By Mike:

Why Biotech Stocks Are Nearing a Rebound

Higher Bid For Qualcomm Is Unlikely, Traders Indicate

Why Netflix, Nike and Starbucks Are Breaking Out

S&P 500 May Pull Back, Setting Up 20% Gain By End 2018

McDonald’s and Starbucks: A Case of Perception Vs. Reality

Nvidia Traders Expect More Gains for the Stock

Biotech Celgene Could Rebound By More Than 15%

Exxon, Chevron, and Oil Are Breaking Out

Costco Could Break to New Highs

Why Nvidia’s Stock Faces A Growth Crisis

Why Big Tech Stocks May Be Headed For A Steep Pullback

Disney’s Investors Suddenly Envision A Streaming Empire

Micron Could Rise At Least 15%, Options Trades Show

Broadcom’s Bid Could Spark A Wave of Chipmaker Takeovers

SNAP’s Stock Rebound Could Last If It Fires Up Growth

Apple Crushed 4Q Earnings, Chip Suppliers To Benefit

Elliot Management Steps Up Efforts to Raise NXP Bid Price

Chipotle Shares Could Fall 20 Percent Further

Broadcom’s Raised Forecast Is Great News For Chip Stocks

Starbucks 4Q Earnings Could Surprise Investors

Apple Shares Are Set Up For Post-Earnings Fall

Apple’s Chip Suppliers Are Breaking Out

Amazon, Alphabet And Microsoft Simply Crushed It

Why Mastercard’s Stock Could Rise 15%

Why Amazon’s Earnings Aren’t As Strong As They Look

Qualcomm Deal With NXP Will Eventually Get Done – M…

Celgene and Biogen May Be Signalling A Biotech Bottom

AMD Could Rise 10% Despite Results, Trades Indicate

Why Tesla’s Stock Is Breaking Down

Why Is McDonald’s Valued Like a Big Tech Stock?

Why Biogen May Sink Biotech Sector As Earnings Beat

Netflix Stock Likely to Rise as EPS Estimates Jump

Bank of America Could Rise Nearly 50%: Technical Analysis

AMD Could Break Out After Results

Qualcomm’s Bid For NXP Still Lacks Investor Support

Celgene’s Sharp Sell-Off Is Likely Overdone

Procter & Gamble Continues To Have Two Big Problems

GE: Getting Excited For The Future

Why IBM’s Big Stock Rally Won’t Last

Allergan Shares On The Verge Of Further Breakdown

We offer a lot of great commentaries all week talking about the major and relevant market events. Be sure to subscribe to get this all and of all free commentaries sent directly to your inbox or follow us on Twitter.

-OR-

Photo credit via Flickr

Michael Kramer owns puts in the XLK

Michael Kramer and the Clients of Mott Capital owns shares of TSLA

Mott Capital Management, LLC is a registered investment adviser. 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. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future.

$xlk, $spy, $xly, $tsla, #sp500, #tesla, #xlk, #xly, #technology, #stocks