June 15, 2020
STOCKS – FB, SHOP, UBER, HD
MACRO – SPY, VIX
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- A Massive Week Lies Ahead For The Stock Market
- Proceed With Caution – Morning
- S&P 500 May Test 3000 Before Days End Again
- MARKETS MELTS – BE CAREFUL
- A Quick Fade Or The Start Of Something More?
- The Market Appears To Be Playing With Fire
- Bets The NASDAQ 100 Falls
- Starbucks Warns, May Be First Of Many
- Stock Remain Overbought SHORT-TERM Based On Indicators
S&P 500 (SPY)
Stocks are falling to start the week off with the S&P 500 dropping by around 2% on the futures. They had been down by about 3% at one point, and it has been worse Asia, with South Korea down nearly 5%, and Japan down almost 3.5%.
The S&P 500 did an outstanding job for most of the early session to hold critical support around 2,980. But that level of support failed just after midnight, resulting in a decline to around 2,925. With option expiration this week, all of this becomes important, because as I noted yesterday, there are significant open interest levels in the S&P 500 cash market around 2,800 to 2,900. These levels could quickly start to pull markets lower, should the sellers begin to have some confidence.
We can see we just tested resistance again around 2,980, and failed. It will likely not a fun first day to the new week.
The VIX is rising as a result of the sell-off, a move back to 54 seems possible.
Uber broke its uptrend this morning, and that could be a sign of more losses for the stock. Now, $30.50 is a significant level for the stock. Should that price break, the next level to watch for does not come until $28.50.
Shopify is jumping despite the broader market weakness after getting upgraded by Piper Sandler with an overweight rating and raising its price target to $843. The area around $790 has been a strong level of resistance for the stock in the last few weeks, so don’t get too excited yet.
Home Depot (HD)
Home Depot is breaking support this morning at $239, and the next significant level to look for comes at $220.
Facebook is getting very close to confirming a double top pattern should it fall below $218.
Hang in there, it likely gets rough the next few days, but we knew this was over due.
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