Stocks dropped on January 24, it's the plunge we have been expecting, but there is likely more further declines to come.

Stocks Finally Drop on January 24, And More May Be On The Way

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. 

S&P 500, spx

Biotech (XBI) 

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.

XBI,

Netflix (NFLX) 

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. 

netflix, nflx

Roku (ROKU) 

Roku fell today but still managed to hold on to support around that $128-130 region. 

roku, roku

Alibaba (BABA) 

Alibaba is on the cusp of a big break down, testing support. If it breaks it $211, it could fall to around $201.

alibaba, baba

Square (SQ) 

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. 

Square, sq

-Night

Mike

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