This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.
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June 24, 2020
STOCKS – BA, LULU, CSCO, BAC
MACRO – SPY, QQQ,
Mike Reading The Markets Premium Content – $35/Month or $300/Year
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S&P 500 (SPY)
Stocks are declining on June 24, with the S&P 500 futures down about 70 basis points and so far finding support around 3080. Today will be a somewhat important day based on those technical charts we have been watching so closely.
The futures have failed multiple times at the 3,145 levels over the past few weeks, and that could prove to be a turning point for the index at least over the short-term. A break of support at 3080 potentially sets up a further decline to around 3050 on the futures. Again, I think there is an excellent chance we retest the recent lows around 2,950.
NASDAQ 100 (QQQ)
At least, based on the trends in the Qs, the ETF is likely to fall back to the lower end of the trading channel around $240.
Additionally, I have pointed out several times to subscribers, we are seasonally entering a difficult time for the markets, with the most notable headwind being the end of quarter rebalancing from institutions. Premium content – The New Week Faces Headwinds – Morning.
This rebalancing, along with other typical quarter-end activities, could weigh on stocks and help to make the next couple of weeks more challenging with potential for a downward bias.
Boeing finds itself sitting on support and an uptrend at $183, with the potential to fall back to $166.
Bank of America (BAC)
Bank of America finds itself sitting on support at $24.25, with a break of support sending the shares lower towards $22.50.
Lululemon has failed at resistance a few times at $311 with the potential to fall back to around $281.
Cisco is trading below support at $45.65, with the potential to fall to around $43.25.
Have a great Wednesday.
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 results.