Stocks continued to go nowhere on Feb. 28, but that may be about to come to an end. There is a new pattern on the hourly chart which appears to be a symmetrical triangle. Generally this is a continuation pattern, and in that case, that would mean the stock market is about to rise. A break out occurs if the S&P 500 can rise over 2,800 on Friday.
The break out up or down will likely happen Friday because as you can see the triangle is pretty much at the end of its life, and will cross on March 1.
The same pattern exists in the NASDAQ
So we shall now wait and see which way stocks break Friday. But I do expect that whichever way the stock market breaks on March 1, it will be the start of the next trend. Let’s hope my instincts are correct and that direction is higher.
Square
Square (NYSE:SQ) had a big turnaround Thursday after the algo’s were cleaned up. It is why trading in the after-hours and pre-market can be so dangerous. It was Nvidia (NASDAQ:NVDA) just a few weeks ago that gave back nearly all of its after-hours gains during the following days trading session.
What does Square do? It not only recouped all of its losses, but gained over 3% on the day. Surging as high as $83. Surprise!
JD
JD (NASDAQ:JD) was another stock that jumped Thursday, rising over 6%. The stock peaked at nearly $30 early in the day and pulled back the rest of the day. It resulted in the refilling most of the gap higher in the early session. But this one still has all the signs of a stock that is likely to continue to rise in the coming weeks.
Netflix
Netflix (NASDAQ:NFLX) is not going the way I had intended it would go. Now the stock is falling outside of the rising wedge, and a break below $355, spells trouble, and the potential for a further decline towards $337. Clearly not what I was expecting.
Amazon
I can’t remember the last time Amazon (NASDAQ:AMZN) has traded sideways for this long. The stock has gone nowhere for the past month. Boring! I had thought we get a lift towards $1780, another prediction that has gone sour.
Acadia
ACADIA (NASDAQ:ACAD) surged again Thursday. The stock did hit a high of around $26.80 today. I did mention in StockTwits Premium chat that the path higher for Acadia gets harder after $27.
But should it break above $27ish, there is a giant gap to fill up to $31.
Facebook (NASDAQ:FB) still looks like it's heading lower towards that Gap at $148.
CVS
Someone asked me about CVS (NYSE:CVS). I will be honest; I have no clue what is going here or why the stock is tanking like this. The chart looks horrible, and it seems to be heading lower towards the $52.
