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The Stock Market Breaks Out, Is The Bottom Now In Place?
We made it, the week, the month, and the quarter are all concluding together, and it couldn’t have come at a better time. The stock market is in rally mode, with the S&P 500 up about 1.7 percent as of 2:45, and the NASDAQ up about 2.1 percent. A strong rally and signs suggest stocks should continue to work higher.
Unlike Monday’s sharp rally, this rally comes after a close retest of the lows from March 23, around 2,600. Additionally, the S&P 500 was able to break free of resistance around 2,633, with a rise of above 2,647 giving me the sense we could make a move towards 2,691 come early next week.
Look at the VIX fail at resistance.
As I noted yesterday, signs were emerging that Facebook was bottoming, and today’s sharp rally confirms that bottom for now. In fact, shares have risen to $160, and the next stop will likely come around $166.
Google shares are also rising sharply today, after bottoming yesterday as well. The positive setup comes as the stock breaks the nearly two-week long downtrend. I think a rise towards $1080 is in the works.
Netflix held above $273, and again crossed over $287, I’m looking for a rise of over $305 for now.
Amazon is back above $1440, and a move back to $1500 seems possible over the short-term, but I think longer-term the stock still has plenty of downside risk.
Micron is struggling to get back over $52.25, But I think it does. The gap has been refilled, and the lower volume levels suggest to me that the selling pressure is waning. I think it has a chance to get to $56.
Even biotechs are breaking out, look at the IBB rising above $107, we could be heading back to $111.50. That is a beautiful “W” in the chart
Biogen is rallying, but I wouldn’t touch this thing unless it gets over $282.
Is Celgene finally breaking out? Oh, do I hope so. I have been wrong time and time again with this.
I don’t think Roku is done falling. But borrow rate is down to 64 percent.
Twitter managed to come all the way back to $27.25 and is now beginning to work higher. Look at that huge gap that just got filled. It looks to be a nice setup.
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Michael Kramer and the clients of Mott Capital own CELG, NFLX, GOOGL
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Tags: #sp500 #tech #technology #amazon #vix #facebook #apple #google #biotech #futures #yen #euro #dollar #nvidia #mu #netflix #twitter #roku