Stocks Continue To Drop As Big Tech Finally Breaks

September 18, 2020

STOCKS – AMZN, AAPL, NVDA, CRM

Macro – SPY, QQQ, 

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Stocks didn’t have the greatest finish to the week, with the S&P 500 falling by around 1% while the NASDAQ 100 fell by 1.3%. At this point, the concern should be building that this decline is more than just a mild pullback, as the S&P 500 broke the 50-day moving average today. It is the same moving average we focused on yesterday. 

S&P 500 (SPY)

The level at 3,330 was vital because it acted as a healthy level of resistance when the index was rising, and that level, which became support, has now broken. It shall likely act as strong resistance once again. 

NASDAQ 100 (QQQ)

Meanwhile, the Qs went on to make a new low, at around $262. 

Amazon (AMZN)

Amazon fell again today, and I fear this one is not finished fall yet. The only thing standing in its way and 2,800 is 2,950. Once 2950 goes, it is on to 2,800. The bigger problem is that 2,800 may not be the bottom.  The stock hasn’t even reached oversold levels yet.  (Premium content from August 26 – An Amazon Drop May Be Coming)

Apple (AAPL)

Apple also fell today, below $109, and that is likely bad news for the stock, as I continue to believe this one is heading to $96. (Premium Content – Apple’s Stock Declines May Only Be Starting)

Salesforce (CRM)

Salesforce is hanging on by a thread from falling to around $219. (Premium content – Salesforce Has A Big Gap Lower To Fill)

Nvidia (NVDA)

Nvidia is on the cusp of a significant breakdown if that uptrend goes, with $427 potentially on the way. (Premium content – Nvidia May Drop 15% More)

That’s going to be all for a Friday; see you over the weekend!

-Mike

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