May 21, 2020
Stocks – AMZN, FB, W, NFLX, AAPL
Macro – SPY, QQQ
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- Naz Uptrend Breaks, Midday
- Watch 2 Key Levels – Morning Commentary 5.21.20
- Stocks Rise, But With No Confirmation And Signs Of Fatigue
- Bets Mounting Gilead Drops
S&P 500 (SPY)
Stocks managed to finish the day lower by 81 basis points to close at 2,951. The 2950 level acted as a level of support all day long, and as long as that level holds, all should be ok. However, a drop below 2,910 likely sets up a steeper drop to around 2,860. Again, nothing changes from a perspective of resistance at 3,000.
Nasdaq 100 ETF (QQQ)
As I noted throughout the day, the NASDAQ 100 ETF did show significant signs of weakness with the ETF falling below the recent uptrend, and potentially setting up a steeper drop to around $222, or the lower end of the channel.
Apple continues to struggle around $320 and inching closer to the uptrend we have been watching. Again the RSI has been showing weakness and suggests that Apple breaks the uptrend and moves lower towards $295 to start.
Amazon also broke the uptrend, and the RSI is also suggesting the shares fall, potentially to $2,285.
Facebook quickly hit the $237 target I laid out yesterday, and just as quickly backed down. Who knows where this stock goes, I think it is ridiculous as it is. Perhaps it pulls back to $218.
Netflix appears to have broken its uptrend, and with the declining RSI, it likely means a move to $418.
It looks like Wayfair has formed a symmetrical triangle, and that likely means that it continues to decline on its path towards $135.
Anyway, that will be all.
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