Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

9 Monster Stock Market Predictions: With Rallies' Highs In, Reversal May Be Next

By Michael KramerStock MarketsMar 28, 2022 12:43AM ET
www.investing.com/analysis/9-monster-stock-market-predictions-with-rallies-highs-in-reversal-may-be-next-200620931
9 Monster Stock Market Predictions: With Rallies' Highs In, Reversal May Be Next
By Michael Kramer   |  Mar 28, 2022 12:43AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

1. S&P 500

It will be a critical week for stocks after two weeks of gains. The S&P 500 finished Friday in an exciting spot and at more than one inflection point. It could mark the start of a much bigger run higher to the mid-4600s or the beginning of the next leg down, which will likely result in a new low.

This past week, the S&P 500 traveled right back to the bottom of the rising megaphone pattern that started in the spring of 2021, which also connects with a horizontal line to the September highs. It looks like a retest of significant resistance.

S&P 500 Daily Chart
S&P 500 Daily Chart

That closing price on the S&P 500 also hits the 61.8% retracement level from the January peak to the February Intraday low. That evidence is reason enough to consider that the rallies’ highs may be in, and a reversal is here.

SPX Daily Chart
SPX Daily Chart

2. NASDAQ

It is also worth noting that the NASDAQ Composite flashed a hanging man on Friday, which can be a bearish reversal candle.

NASDAQ Composite Index Daily Chart
NASDAQ Composite Index Daily Chart

3. High Yield ETF

But more critically, a bond proxy like the iShares iBoxx $ High Yield Corporate Bond ETF (NYSE:HYG), which typically trades highly correlated to the S&P 500, started to head lower again. That ETF finished the week down almost 1%.

HYG 2-Hr Chart
HYG 2-Hr Chart

4. Corporate Bonds

The iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSE:LQD) finished the week down more than 2%.

HYG 2-Hr Chart
HYG 2-Hr Chart

5. Real Rates

The iShares TIPS Bond ETF (NYSE:TIP) also fell by 1.4% this week. When this ETF falls, it is indicative of real rates rising. So it’s no wonder why the Invesco QQQ Trust ETF (NASDAQ:QQQ) has followed the TIP ETF so closely over the past year.

The recent rally in the QQQ could have the NASDAQ playing catch up to falling real yields. But now that real yields are again starting to rise, that likely means the NASDAQ will need to reverse lower.

TIP Daily Chart
TIP Daily Chart

6. Amazon

Amazon.com (NASDAQ:AMZN) couldn’t push beyond that $3,300 level I mentioned last week. On top of that, the long-term trend in the RSI is pretty negative. If Amazon turned lower at this point, it should not come as a surprise.

Amazon Daily Chart
Amazon Daily Chart

7. Acadia

It would be something if ACADIA Pharmaceuticals (NASDAQ:ACAD) could clear resistance at $27 and push back to $30. I am hopeful this stock has finally turned the corner, and I think it is a big positive that the FDA is finally giving Nuplazid its chance in front of an Adcom panel for Alzheimer’s disease psychosis. It feels like a never-ending saga with Acadia, and maybe I’m getting my hopes up, but the chart is starting to look positive.

Acadia Daily Chart
Acadia Daily Chart

8. Freeport

Higher copper prices could help keep Freeport-McMoran Copper & Gold (NYSE:FCX) moving higher, as the shares have the potential to climb back to $56.85, a price not seen since before the financial crisis.

Freeport Daily Chart
Freeport Daily Chart

9. Adobe

Meanwhile, Adobe Systems (NASDAQ:ADBE) flirts with support at $420; it would be great if this stock could flush lower already. It would probably set up a long-term buying opportunity if it can get back to or below that February 2020 level. That valuation would be right at or near its historical trends.

Adobe Daily Chart
Adobe Daily Chart

This Week's Free YouTube Video: 4 Keys To The Stock Market For The Week of 3.28.22

Original Post

9 Monster Stock Market Predictions: With Rallies' Highs In, Reversal May Be Next
 

Related Articles

9 Monster Stock Market Predictions: With Rallies' Highs In, Reversal May Be Next

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
William Robbins
William Robbins Mar 28, 2022 11:10PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This is a an excellent technical synopsis of the markets by M. Kramer. If the narkets do decide to head down from here, we will likely see the VIX break it’s daily downtrend (since 3/8/22) and head back up.
Al Ose
Al Ose Mar 28, 2022 7:00AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
When will the U turn happen? It is near…….Think about all the money and purchasing piwer getting drained out right now accross the board all at once. Food, gas, rent inflation. Increasing interest rates, and increasing fast, and shrinking balance sheet. There will be the “slowdown” shock to the market in the shorter term. Imho. 100%
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email