September 24, 2020
STOCKS – BA, AAPL, DOCU
Macro – SPY, DIA
- Stocks Fail, 2,860 Still In Play
- Stocks Failing At Tough Resistance Levels
- Stock Mount Weak Rally, Watch For Afternoon Fade- Midday
- Dead Cat Bounce – Morning
- This Is A Different Sell-Off
- The Market Has Little To Support It
- The Second Leg Lower – Morning
- 10 THEMES FOR THE WEEK OF SEPTEMBER 21
- Nvidia May Drop 15% More
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL
Stocks are mixed this morning, with the S&P 500 up 25bps, and the Qs down 7bps. The mixed session follows a brutal session in Asia, which saw Hong Kong fall 1.8%, a 2.6% decline in South Korea, and a 1.1% drop in Japan. Europe is fairing better with Germany up 10bps and the UK down 30bps.
S&P 500 (SPY)
At least for now, the futures are finding some stability around the 3,210 level and have since bounced some to around 3,233. It seems that for now, the S&P 500 futures are at the lower end of the trading channel, and if we do see a bounce today, I wouldn’t expect to get past 3,295. I drop below 3,200 on the S&P 500 futures, likely triggers a very steep and sharp decline to 3,000.
Dow Joes (DIA)
I know we don’t usually focus on the Dow, but it looks like there is a head and shoulders pattern on the daily chart that has been completed and is now breaking down. A break of support at 26,200 likely triggers a drop to 25,000, a decline of 7% from its current price.
Apple is trading a little bit lower today, with a drop below $106, likely trigger a retest of the lows around $104. But the big problem comes if the stock breaks $104 because that will open the flood gates to $96.
Docusign retested the breaking of the uptrend and failed. It confirms the move higher is over, and that a drop to $160 is likely in the works.
Boeing fell below support at $157, which probably leads to that decline to $144 I have looked for.
Good luck today
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