Stocks Are Set To Open Lower On February 27, Testing Support Regions
Stocks are ready to fall again on February 27, testing the support regions we have been watching; it makes today a critical test.

Stocks Are Set To Open Lower On February 27, Testing Support Regions

FEBRUARY 27, 2020

STOCKS: ACAD, BABA, MU, AMD, SQ

MARCO: SPY, GOLD, EWG, EWY

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN ACAD

Stocks are pointing to some more losses this morning, with the S&P 500 futures down to about 3,100, with support on the futures around 3,080. Like I have said, it seems that the 3,110 region appears to be the creation of a bottoming process, and so far, we are still hanging around this region.

The S&P 500 fell to around 3,115 on February 25, 3110, on the 26, and about 3,100 today. So It creates this 15 point region where it seems that at least declines have slowed. So that is roughly a 75 basis point region, and that tends to be how I approach things, looking for regions.

sp500, spx

Anyway, this is how it looks on the daily change of the S&P 500.

S&P 500, spx

KOSPI (EWY)

You can see this same type of zone that has formed on the Kospi, which is about 1% wide and is an essential level of support around 2,061 that dates back to mid-October.

kospi

Germany (DAX)

Again, you can see the same in the DAX, which is also at an essential level of support at its October break out around 12,500.

S&P 500, spx

Gold (GOLD)

Gold prices have hardly moved, and that seems odd to me.

gold

So we can wait and see what happens, nobody has a clue what will happen or when it will end. I’ll probably be proven wrong too, because I’m trying to think in a logical sense, while markets operate in an illogical sense. 

Acadia (ACAD)

I thought Acadia is starting to show some strong momentum on Nuplazid sales, and in a normal environment, the stock should trade higher. The company noted on the call that Nuplazid could get an approval in DRP before year-end, due to its breakthrough therapy designation. So will the stock rise? I hope it does; it deserves too. But trying to figure out where this stock goes in a normal trading session is hard enough, let alone in this environment.

acadia, aacad

Alibaba (BABA)

Alibaba continues to rebound and rise in this environment, which seems unusual. But $211 has been acting as resistance so that it if can clear $211, then perhaps it can move on to $220. If not, back to $200.

baba

AMD (AMD)

AMD is sitting on a support level at $46.80, and that level of support has been firm for some time. This level needs to hold for AMD, or it declines to $43.

AMD

Square (SQ) 

Square is trading at resistance at $83 following its results, and this may not be a day for the stock to break resistance.

square,, sq

Micron (MU) 

Micron is falling some but holding support, and yesterday I noted that I was seeing some bullish betting that shares recover by April. Free – Micron’s Stock May Not Stay Down For Long

micron, mu

My throat is hurting today, ugh. 

-Mike

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