Stocks fell on June 24 by about 2.6% on the S&P 500 to finish the day around 3,050. Most of the losses came early in the session with some decent stabilization in the afternoon. The index attempted to rally into the close, but there was a nearly $4-billion sell imbalance, that crushed whatever momentum was forming, sending the index lower. But we knew this coming yesterday.
The S&P 500 tried to rally above 3065 on three occasions today and failed each time. Not the best sign that this was a one day hit.
The bigger problem was the trading action on the S&P e-minis because they failed at resistance about five times today. Not the greatest of signs, and could be indicating that today’s decline could continue to work its way lower, with the next significant level of support not coming until 3000.
Nasdaq 100 (QQQ)
But the action in the Qs may give us the best indication of what happens next. As talked about yesterday, the ETF hit the upper end of the trading channel, and today it fell, as we expected. The question that tells us a lot about the future will be what happens when it should arrive at that lower channel trend line around $240. If it holds and bounces, the sell-off is likely over. Should we fall through it and close below that trend line, the sell-off has only first begun.
Micron
Micron Technology Inc (NASDAQ:MU) is now teetering on a minor uptrend and has fallen through resistance at $49.80. The potential for that drop to $45.50 is rising.
AT&T
AT&T (NYSE:T) fell sharply today, and there was alot of bearish betting in this on the open interest levels today. A break of $28.90 sets up a decline to $27.35.
Uber
Uber (NYSE:UBER) got walloped today, and I think this business model struggles in this new coronavirus world. Eats won’t be enough for them. I first noted bearish betting in the stock on June 15, and I still think it falls to around $28.30.
GE
Finally, if General Electric (NYSE:GE) manages to fall below $6.50, there is a pretty good chance, it goes back to $5.50.
