Stocks had a rough day on Friday, April 3, after the unemployment report came in much weaker than expected. When digging through the data, it seems the actual unemployment rate may have been understated at 4.4%. There were many employees that, for one reason or another, were moved from the labor force to unemployed, and removed from the labor force altogether.
S&P 500 (SPY)
It resulted in the S&P 500 trading down by about 1.5%, which wasn’t bad, but it could have been much worse. During the last 20 minutes of the trading session, some talk of an oil output cut got the S&P 500 to jump by around 1%. The index did manage to fail at the trend line I have drawn into the chart. Monday will be interesting.
VIX
The VIX continues to fall, and I as I have been explaining, the decline has more to do with daily moves in the S&P 500 settling, then the notion that fears are reasoning. I explain this week in an audio update, as we continue to see the S&P 500 daily trading ranges fall back to 2-3%, it would make sense to see it decline back to the mid to upper 30’s.
AMD (AMD)
Advanced Micro Devices (NASDAQ:AMD) fell on Friday below support at $43 and is now facing a sharp decline potentially to around $38.50.
Splunk (SPLK)
Splunk (NASDAQ:SPLK) has been on the decline in recent days too; it is strange to some degree considering one would think there business shouldn’t be hurt too severely during this period. Regardless derisking is taking place, and this is a high multiple stock. It should hopefully find some support around $94.50.
Fortinet (FTNT)
Fortinet (NASDAQ:FTNT)’s chart looks pretty strong here, maybe a cup and handle pattern. Regardless the trend appears to be higher, potentially moving to around $107.50.
The Trade Desk (TTD)
Trade Desk (NASDAQ:TTD) looks like it may continue to decline, after forming that bear flag. The stock fell below support at $165, and a retest of $139 or worse seems possible here.
