The S&P 500 finished the day lower by almost 50bps, after gapping higher by as much as 1% to start the day. It marked a 1.35% reversal from the peak to finish the day at 3,647.
I’m not sure if there was really any news that changed anything, but some blamed it on new fears of lockdowns here in the US. To this point, the market has never cared about new lockdowns. The reason for the turn lower really doesn’t matter much.
Overall, the index failed right at resistance around 3,700, filled the gap, and pushed lower. Again, as noted in my video from this weekend, 3 of 3 paths I mapped out suggested further decline for the short-term. Whether this is the start of something severe or not is too early to know.
AMD
Advanced Micro Devices (NASDAQ:AMD) got an after-hours price target bump from Goldman, which pushed its target to $110 from $96 due to expanded market multiples. Yeah, sure, whatever. Regardless, the stock is getting close to breaking out of its trading range. We won’t know for sure until later today, and it will take a close above $96 to confirm that break out.
Netflix
Netflix (NASDAQ:NFLX) has filled the gap at $525 and based on that, the stock should resume its trend lower. The RSI is trending lower as well, suggesting a return to $495.
Broadcom
Broadcom (NASDAQ:AVGO) rose yesterday and tested the breaking of the uptrend, and failed. It should result in the stock trading lower back towards $400, as noted.
Altria
Altria Group (NYSE:MO) may be breaking out; the stock appears to have formed an inverse hand and shoulder pattern, while breaking resistance, and a downtrend around $42, three bullish indicators. If the stock can hold on to $42, I think it has a chance of going to $47.
