Stocks are pointing to a lower start on May 21 ahead of what is likely to be a busy day for economic data.

Stocks May Drop on May 21 Ahead of Economic Data Dump

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MAY 21L 2020




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Stocks are pointing to a slightly lower opening, certainly, nothing that is scary or concerning, a mere 35 basis points or so. We d0 get initial jobless claims and the Philly Fed at 8:30, along with the flash PMI at 9:45, Existing homes sales at 10 AM, and Jay Powell at 2:30. Are any of these likely to be market moving? Probably not at this point. If anything, initial claims have acted as a positive for stocks for several weeks now.

The Eurozone PMI data today indicated that the second-quarter GDP is tracking 10% below the first quarter. The weak data is weighing on European markets, with Germany trading down by over 1%. But mainly the index has gone nowhere for weeks.


At least for today, the S&P 500 ETF has resistance around 3,000 and support at 2,900.

S&P 500, spy

Intel (INTC)

Intel has been steadily rising and is nearing a harsh resistance region around $64, which completes a gap fill February 21.

intel, intc

Cisco (CSCO)

Cisco has also basically completed its gap from February 21. Typically once these gaps are filled, a stock reverse to the direction of the prior trend, which in this case is lower.

intel, intc

Apple (AAPL)

Apple’s stock is now is hugging the uptrend, while the RSI is now nearly overbought. The stock needs to be watched closely for a break of the uptrend and support around $311. a break of that support could trigger a decline to around $295, and potentially $265.

apple, aapl

Have a good one


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