Monster Market Commentary

Stocks Slump On May 21 As Technology Uptrends Break

May 21, 2020

Stocks – AMZN, FB, W, NFLX, AAPL

Macro – SPY, QQQ

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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 (AAPL)

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 (AMZN)

Amazon also broke the uptrend, and the RSI is also suggesting the shares fall, potentially to $2,285. 

Facebook (FB)

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 (NFLX)

Netflix appears to have broken its uptrend, and with the declining RSI, it likely means a move to $418. 

Wayfair (W)

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. 

-Mike

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