Janaury 24, 2020
Stocks: BABA, SQ, NFLX, ROKU
Macro: SPY, XBI
S&P 500 (SPY)
Stocks dropped on January 24, no real surprise, right? I have been looking for a reversal since late last week, and finally, we saw a little bit of a pullback. The index managed to fall to roughly 3,282, which is a minor level of support for the S&P 500. At this point, I do think there is likely further to fall; however, with that said, I would think it first rebounds and retests 3,300. I do believe we are heading towards 3,250.
The biotech ETF (XBI) got smoked today, falling by almost 3%, but more importantly, falling below support $91.50. It probably setups a gap fill to around $88.
Netflix had a good day, building on yesterday’s gains. It was impressive, especially on a down day. I’d like to see the stock close above $362 before thinking about what’s next.
Roku fell today but still managed to hold on to support around that $128-130 region.
Alibaba is on the cusp of a big break down, testing support. If it breaks it $211, it could fall to around $201.
Square got a significant upgrade today at Credit Suisse with an $84 price target. I noted Square was breaking out today, along with some bullish options betting. Premium content- Square Is Breaking Out – BTW, the 2-week FREE trial period offer is ending on Saturday. SO if you want to try the service out now is the time.