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Tech Stocks Are Back as the Stock Market Finally Break Out

Tech Stocks Are Back as the Stock Market Finally Break Out



Tech Stocks Are Back as the Stock Market Finally Break Out

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The stock market confirmed the break out we noted in yesterday’s write-up with a solid showing up by about 85 bps, closing the week out at 2,760. When you look at the chart below can’t help but stare in amazement at how fine-tuned the algo’s are in today’s world of trading. Anyone that follows this blog daily knows I draw out these trends, support, and resistance levels and tend to leave them. Today’s price action in the S&P 500 managed to stop right at resistance below 2,761, is it by chance? Possibly, we can never know for sure, but I have seen this often enough to know probably isn’t by chance, you will understand why shortly.  (See: The Stock Market Is A Battle of Good and Bad As Uncertainty Runs Wild)

spx

Tech Stocks

The technology sector looks like it is coming back nicely, and support has clearly held $68.90. We can also see that volume has been surging the last few days, and that would suggest to me the buyers are stepping into the ETF with it rising into today’s close.  A break out next week?

xlk

Facebook

Facebook shares have broken out and also look very strong. So much for the user privacy concerns in March.

facebook

Netflix

Netflix shares also appear to have broken out, and like Facebook had a similar downtrend in place. I just added the red downtrend line today, because it was fairly evident to me it should be there.  (See: Netflix International Subscriber Growth Appears To Be Hot– Premium Membership Needed!)

netflix

Alphabet

Alphabet also looks like it held support levels nicely, and I think it may rise back to $1200.

googl

Amazon

The pattern in Amazon doesn’t look good at the moment, and I still think the rising wedge is a bearish indicator with the potential for 10 percent or so drop in the stock.

amazon

Banks

The banks still look lousy, and most of the big banks report results next Friday the 13th. Uh-Oh! Friday the 13th, of all days.  The XLF  can’t get above resistance at $26.90

banks

Morgan Stanley

You really can’t make some of this stuff up, look at where Morgan Stanley stopped rising today! See what I mean!

Micron

Micron still can’t back above resistance at $54. I fear the longer it stays below resistance, the more the orders odds increase a drop to $50 are on the way.  The only positive is that long-term uptrend is rising, reducing the amount of a potential fall.

micron

Twitter

Well there is the Twitter break out we were looking for. $52.50 maybe.

twitter

Acadia

Maybe even Acadia finally broke out; I’d take $21.50 given the ride this stock has been on.  But we can see a clear triple bottom now in place, and a rise above two downtrends. We can only hope.

acadia

Have a good one!

-Mike

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#banks #technology #stocks #amazon #facebook #micron #netflix #acadia