Stocks Will Try To Rally On Miracle Monday, October 5

Stocks Will Try To Rally On Miracle Monday, October 5

October 5, 2020

STOCKS – DOCU, T, SBUX

Macro – SPY, QQQ

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Stocks are rebounding some this morning, with the S&P 500 futures up about 80 bps and the Nasdaq QQQ up 1%. not quite the Miracle Monday type of price action we are used too but up none the less.

S&P 500 (SPY)

The S&P 500 looks a little iffy, and this may turn out to be one of those rare Mondays that doesn’t result in the market finishing higher. The futures appear to be forming a potential head and shoulders pattern on the intraday chart. But we need a break of 3,300 to confirm that bearish intraday pattern. Should that break of support happen, the index is likely to drop towards 3,200.

NASDAQ 100 (QQQ)

We can see that a similar pattern has formed a similar intraday pattern on the NASDAQ 100 futures as well.

DocuSign (DOCU)

DocuSign was upgraded today to overweight from equal weight with a $260 price target at Morgan Stanley. The stock has struggled recently to get out of this $220 to $230 region. Also, the shares appear to have some overhead resistance at an uptrend. A failure to advance beyond $235 likely indicates that the stock is heading lower from here, not higher.

AT&T (T)

KeyBanc downgraded AT&T to Underweight from Sector Weight and a $25 price target. The stock has been slowly grinding lower towards support around $27.35.

Starbucks (SBUX)

Opco boosted its price target on Starbucks to $101 from $85 and kept its outperform rating. The stock has been stuck around $85 to $90 for some time. A failure to advance beyond $90 is likely to lead to a drop to approximately $78.50.

Have a great day!

Mike

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