Stocks Failed At Key Resistance As A Storm Draws Near


Stocks – FOBU, AMD, FB, FCX


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Quick note- There will be no write-up tomorrow night. I wanted to say thank you to everyone that chooses to read me every day. I know 2020 was not my best year in calling the broader markets, but I hope to make for it in 2021. Thanks for sticking it out with me.

Also, I plan to write up my 10 predictions for 2021 this weekend. -Mike

S&P 500 (SPY)

Stocks finished the day flat on December 23, despite having a good move higher off the opening. The S&P 500 dropped sharply around 3:50 PM when the closing crossed revealed nearly $3 billion for sale that was unpaired. It was larger than the normal amount.

That resulted in the S&P 500 gapping down and pushing lower for the balance of the day. The buyer vanished in the final 10 minutes. Perhaps there is now nervousness ahead of 3.5 day weekend that is approaching tomorrow afternoon. Especially with the stimulus deal now in doubt.


The price action in the Qs was worse, with the ETF falling by 50 basis points. Again, like the S&P 500, there was a straight line drop in the at the end of the day. It may be worse than that; the breakdown in the uptrend has been confirmed at this point.

Again, I continue to believe this a market that is going lower from here, not higher. How bad it gets larger depends on many factors, and I couldn’t begin to imagine, but depending on how you want to map things out, there are many possibilities.

Fubo (FUBO)

Anyway, Fubo didn’t have such a great day, falling by more than 15%. Now the stock is on the cusp of a steeper drop, with a potential head and shoulders. A break of support at $52.80 sets up a steeper drop to around $50.50. After that, it may be lights out, with no support until $39.75.


AMD is heading lower, and I continue to believe this is a stock that is going back to $75. Sorry. Nothing has changed in my view. The current pattern suggests it even more.

Nvidia (NVDA)

Nvidia looks like it is ready to fall off a cliff, with $460 likely the next stop. Just look at that those volume levels. Look at the RSI.

Broadcom (AVGO)

Broadcom appears to be on the list of Semis that look sluggish. With a rising wedge pattern. Perhaps we go back to $400, maybe more.

The Ghost of Stock Markets Past?

Have a good holiday and a 3.5 day weekend.


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