Stocks Rebound on April 21, As Bitcoin Melts And Gold Breaks Out

April 21, 2021

STOCKS – MSFT, ROKU, GLD, BTC

MACRO – SPY

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Stocks advanced today, erasing all of yesterday’s losses and more. The S&P 500 finished the day up 93 bps and closed at 4,173. Meanwhile, the NASDAQ 100 ETF rose by around 86 bps, closing around $339.

The S&P 500 is poised to close the gap at 4,185. That is the next level to look for, and a move to that level will tell us a lot about what happens thereafter. Clearly, if it moves above 4,185; there is a good chance we move up to 4,240. If we fail, at 4,185, there is a good chance we revert and move to retest 4,125.

The bears had a lot going their way this morning, especially with Netflix down sharply. But they simply didn’t show up to play the game.

After-hours the S&P 500 E-mini futures, are finding resistance at the uptrend that formed on April 7. This could prove to be a retest of the break in trend, and move lower.

Bitcoin isn’t helping is breaking a very bearish pattern. The pattern in bitcoin is on the hourly chart and is negative –a bear pennant. The wave count suggests the next break is lower too.

The relative strength index is breaking to a new low, also suggesting lower prices lie ahead for Bitcoin. The target price level would be around 51,900, but it could be much lower, with the level to look for 45,000.

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Gold (GLD)

Gold has been pushing higher recently, after finding support around $1,675. It may even be forming a double bottom off of support. A push above $1,800 likely confirms the double bottom pattern and the potential to push up to $1915.

Microsoft (MSFT)

Today, I noted in an article; I thought Microsoft could run up to around $275. (Should be free to read – Microsoft’s Stock May Rally Further Following Its Quarterly Results)

Roku (ROKU)

I thought Roku would be down today given Netflix’s results. The stock is still overvalued in my opinion, and I tend to think Vizio now offers a direct peer. (Should be free to read – Roku’s Stock Is Still Insanely Valued)

That’s all today

Mike

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