Stocks Plunge on April 1 With More Declines To Come
The stock market fell sharply on April 1 as the sellers returned with a vengeance.

Stocks Plunge on April 1 With More Declines To Come

April 1, 2020

Stocks – BA, GS, NVDA, SHOP, SQ

Macro – SPY, IWM, Oil

Mike’s Reading The Markets Premium Content $35/Month or $300/Year

Stocks fell again on April 1, and it seems like the trend lower is now taking over. The market is likely to continue lower as the timeline for the virus continues to be pushed further into the future. New York is now calling for the peak virus at the end of April. The longer we stay in this period, the worst the economic impact will be. Again, the great unknown here is the “E” in P/E. As long as that is an unknown variable, the market has nothing to cling on to. There is nothing to tell investors what is cheap or expensive.

Not to mention the long-term effect on the overall economy will grow more severe, along with the potential psychological impact this is having on people and how it may be changing their long-term behaviors.

S&P 500 (SPY)

We did gap lower on the S&P 500 and managed to find a minor level of support around 2,450 at days end, but I am not optimistic it shall hold for long. The next significant level I am looking for is at 2,400. At this point, I continue to think we head towards 2,270 whether we make new lows or not will depend on where we are in the cycle of this virus. If we are still in the early innings, then the market will fall dramatically further. Premium video, now with easy viewing options – Data, Earnings, Techincal Suggest Lower Prices For Stocks

Russell (IWM)

Russell fell by 7% today, and fell right through two levels of support, with the next one at the March lows.

Oil

As I noted in the video, and midday audio commentary I think oil is likely falling to around $17.25.

oil

Boeing (BA)

Boeing fell hard today and is now back to support at $102, and likely moving lower still to around $102.

ba, boeing
Goldman (GS)

Goldman fell sharply and is now trading below support $150 and is likely heading back to the lows at $136. Goldman, GS

Shopify (SHOP)

Shopify fell below support at $386, and I think it is going to refill that gap down at $360.

shop,

Nvidia (NVDA)

Nvidia also has support at $218, which seems possible now that it fell below $245.

Square (SQ)

Finally, Square has a gap of its own to fill around $40, and it also broke support today at $47.25.

square, sq

Have a good one

-Mike

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