Stocks fell for a second day on Tuesday, with the S&P 500 dropping by 70 bps, nothing too exciting. The only thing established yesterday is some good support around the 4,125, which was anticipated.
There is still a gap at 4,080 that needs to be closed, and with Netflix (NASDAQ:NFLX) dropping last night, we could see that get filled later today. I still think we head towards 3,960 over the next few weeks.
Biotech
Well, I wasn’t sure what kept the SPDR® S&P Biotech ETF (NYSE:XBI) from falling below $126.85,but I figured it out. That is where the 200-day moving average rests. The XBI already broke its 50-day moving, and a break of the 200-day would be terrible.
I am wondering if the XBI already broke the 200-day, and now it is acting as resistance. It sure looks like it could be. It doesn’t look good overall, and I wouldn’t be surprised to see it drop to $114.
Netflix
Netflix (NASDAQ:NFLX) is falling below $500 in the after hour. It missed net adds for the first quarter and guidance for the second quarter. Not a good sign. Clearly, the “re-opening” effects are happening sooner, not to mention they raised prices.
I don’t think I have ever seen them guide a quarter to just 1 million net adds. That means there may even be a risk net adds, turning to net losses in the second quarter, which will likely cross people’s minds, especially after the company missed guidance by around 2 million subscribers in the first quarter.
The price around $490 now becomes resistance with support at $470. The stock has tested $470 many times, and I think these results could put that in play.
Roku
Roku (NASDAQ:ROKU) is trading lower following the Netflix news, as it should. The next level to watch there is around $300.
IBM
Not only did International Business Machines (NYSE:IBM) break out yesterday and rise above resistance at $136, it gapped over resistance. Maybe even a breakaway gap.
That could be good news and pave the way for a push to $148.
Boeing
Boeing (NYSE:BA) fell about 4% on Tuesday. The stock broke below support at $239, making it possible for the stock to fall back to $215.
