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September 24 – Stock mentions: SPY, QQQ, AMD, SHOP, ROKU, AMZN, NVDA
Stocks had a lousy day with the S&P 500 falling by roughly 90 basis points. There is a new worry that is plaguing the market today, well really it is an old worry, a Trump impeachment. Remember we went through this when he was first elected. I don’t want to get political here, but I’m not sure the Dems will get anywhere with this since it is highly unlikely the Senate would vote in favor of impeachment. premium content – get the first two weeks free – Stocks Crack
S&P 500 (SPY)
Regardless I think the market was likely heading lower as we had been talking about for days. All it needed was that nudge, and it got that nudge today. For now the S&P 500 it fell to support around 2,960. The next level down come at that gap around 2935, and give the markets to test the August break out. It is a region that should offer strong support for the market, assuming there is nothing crazy on the political front.
The Nasdaq already filled the gap around 7980.
We will have to see what happens next. I could make a case with the gap filled for a bottomed to have been reached — or the case for another move lower, perhaps by one or so percent.
The one mistake I find I typically make is that things happen faster than I expect, and I tend to have a target that is too high or low. I guess we can find out together.
The goods news is that some of these stocks that have struggled at least had meaningful bounces.
Shop fell to support at $285, and that is where the stock managed to find a bounce. It is a positive sign for Shop, but it needs to get back over $315, to signify another important.
Roku also tested support today at $100, which is also positive that it managed to hold.
Perhaps there is some meaning here, maybe not. But a bounce at key levels support is always good to see.
For the moment, support for AMD continues to hold at $29.40. I’m not sure how long that will last. Momentum continues to decline as measured by the RSI.
Amazon broke the uptrend and support at $1750. Now the question is, what happens next? The odds of moving to $1700 are increasing.
For now, Nvidia continues to hold technical support at $171, that needs to hold. A break below that level means $160.
Have a good night, no commentary in the morning.
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