Stocks are dropping on September 17 as investors digest the latest Fed announcement.

Stocks May Be Getting Ready For Their Next Leg Lower

September 16, 2020

STOCKS – SHOP, UBER, NVDA

Macro – SPY, QQQ, 

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S&P 500 (SPY)

Stocks are falling this morning following a pretty wild overnight futures trading session that saw those futures fall all the way to 3,312, and down nearly 1.9% at the trough. We did manage to find support, which brings us to our next essential level. A break of 3,312 gets the market taking its next leg lower. So this is an essential region for the markets. Hold support, and we can see a sharp bounce, break support, and the next stop is around 3,200. 

Meanwhile, the Qs are falling to around $271.50, and at this point, filling that gap from Monday’s open. 

I really don’t like the setup in the charts, and I fear the next leg down is upon us. I guess we are going to find out really soon.

UBER (UBER)

Uber looks like it could see a relatively sharp pullback as it sets up a double top pattern. A break below $35.75 pushes the shares further to around $34.35.

Nvidia (NVDA)

Nvidia is getting closer and closer to that long-term uptrend. That could be a big problem for the stock should it break. I still can’t believe they paid 20 times sales for ARM when the company has hardly any revenue growth since Softbank bought the company in 2016 for only 17 times sales. Lol. Amazing. I also wonder if anyone has realized that this deal is about 7% dilutive to existing holders. 

 

Shopify (SHOP)

Shop is getting close to support at $850, a break of support sends the shares even lower to $740. 

Good luck!

-Mike

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