Stocks Drop On November 17 And Face Further Declines

11.17.20

Stocks – ACAD, TSLA, MU, XOM, NFLX

Macro – SPY

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Stocks fell on both the S&P 500 and the Qs dropping too. Overall, it was a game of the fill the gap, with the index gapping lower to start the day, and then rally back to fill that gap back up during the day. Ultimately, the index once again failed resistance around 3,625

The failure again is now getting concerning for me and suggests the index may indeed be running out of the much-needed juice to push even higher. If that wasn’t enough, volume levels in the Qs are just evaporating.

Options volumes are also declining in the technology sector as well, which again supports to some degree that the market is losing some of that momentum needed to push the overall markets higher.

Couple that with the number of stocks trading above their 200-day moving average, and the ingredients appear to be right for a topping in the market. (Premium content – Signs For A Drop To 3200 Mount)

Tesla (TSLA)

Tesla surged today by over 7% but failed to push over resistance at $460. That is the level where everything has to happen. With no breakout, it seems like there is a good chance the stock fills the gap back to $410.

Exxon (XOM)

Exxon was up again today, and it is basically around 1% from my target, so I’m calling it a day there. I will re-evaluate that one.

GE (GE)

GE made it all the way to $9.74 today, pretty amazing, as this stock has really risen from the ashes. It is probably overbought at this point, with an RSI over 80 and plenty of gaps to fill lower.

Amazon (AMZN)

Amazon continues to trend in the wrong direction, and I still think this stock is heading lower from here. No, this is not about holding for the long-term; we are merely talking about trading here.

-Mike

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