As I’m typing this, the S&P 500 Futures is up six-hundredths of a single percentage point, just meandering beneath its resistance line.
This is a fairly important resistance line, but one which could be very easily penetrated, because it is merely anchored to a single data point. There is, however, an absolutely enormous blob of overhead supply which, even at these levels, should serve as a severe impediment to further upside price action.
What is interesting about this “blob” is how well it is expressed in some important individual stocks. Here we see Alphabet (NASDAQ:GOOGL) which reports after the close today. I mean, if that isn’t a top, what is?
To me, the even more compelling pattern is Amazon (NASDAQ:AMZN) which reports Thursday after the close. To my eyes, this is the most vulnerable household name stock on my radar.
