Stocks jumped on Tuesday, July 21, then fell. The volatility levels seem to be at extremes, even though they are not reflected in the VIX index. The S&P 500 had been up by around 70 basis points but finished the day up just 18 bps. Meanwhile, the NASDAQ 100 finished the day lower by 1%.
S&P 500 (SPY)
The S&P 500 gapped higher yesterday, and by day's end, that gap was filled. The index tried to break out, rising to as high as 3,275 but closed well short of it. At this point, we can say that the index failed to break out in that 3,265 region.
NASDAQ 100 (QQQ)
The big question, I’m sure everyone is wondering is if the NDX is forming a double top. The answer is that it is too soon to tell. The NDX would need to fall below that 10,400 level. There is the possibility that a bump-and-run pattern has formed in the index also. The RSI is trending lower now, and that is important to note.
Again, I continue to see bearish put buying in the Qs that suggesting there are plenty of people betting on the market's fall from here. I know it is hard to believe, but it is what it is.
Netflix
Netflix (NASDAQ:NFLX) broke through support today at $495. I happen to think $475 is next.
Nvidia
Suddenly NVIDIA (NASDAQ:NVDA) has a minor downtrend forming to match its declining RSI. No bearish options bets yesterday, but we have seen plenty in recent days.
Apple
Apple (NASDAQ:AAPL) is very close to the uptrend now, a break of the uptrend would be terrible news for the entire market. The RSI is rolling over, $372 would be next.
SNAP
Snap (NYSE:SNAP) got hit hard; the company sees third quarter Daily Active Users in a range of 242 to 244 million, basically 243 million at the mid-point. That is shy of estimates for 244.8 million. There could be the making of a head and shoulders pattern there, with a break of $22.50 confirming the pattern. That would be a significant reversal.
Tencent
I don’t know what you’ll be doing overnight, but I know I will be watching Tencent (HK:0700). Yeah, this thing has traced out Amazon’s performance nearly entirely. The stock was up 8% percent Monday night, and if you want to know where Amazon (NASDAQ:AMZN) is going today, you probably should be watching 700 HK.
A lot of potential double tops out there.