Stocks Hold Gains On September 22 But Have Limited Upside
Stocks managed to hold on to their early morning rally, but overhead resistance seems fierce.

Stocks Hold Gains On September 22 But Have Limited Upside

September 22, 2020

STOCKS – XOM, CVX, AMZN, FCX

Macro – SPY, QQQ, FXE, UUP

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S&P 500 (SPY)

The S&P 500 managed to stage a nice comeback today, rising to and closing the gap, as mentioned earlier today. The big question is where things go from here, and depending on how we open tomorrow will determine where we go next. Either way, the upside is minimal here because the downtrend and resistance around 3,340 are powerful.

What should happen tomorrow is a move lower. Typically once a gap is filled, it resumes the previous trend, which is down. 

Nasdaq 100 (QQQ)

Additionally, the upside in the Qs is limited, with some additional room up to $274-275.

Dollar (UUP)

The dollar rallied today, clearing and holding on at 93.95. It likely continues to push even on higher, towards 96. 

Euro (FXE)

The euro also broke some support today, and that is going only further to strengthen the dollar. 

Exxon (XOM)

The stronger dollar will continue to crush the commodity-based names, with Exxon falling today and likely heading back to its March lows. 

Chevron (CVX)

Meanwhile, Chevron broke and likely heading lower too, probably $67.20. 

Freeport (FCX)

Freeport is likely to break as well, and head back to $14.90, and potentially $12.70.

Amazon (AMZN)

Amazon managed to push higher today, but not much was accomplished because the stock once again is back in a zone of resistance between $3,100 and $3,200. Maybe it tests the upper bound, but I still think this one is likely to reverse lower over the next few days. Once stocks break a strong level of support, those levels become substantial levels of resistance.

Take care 

-Mike

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