Stocks fell sharply yesterday ahead of the FOMC meeting. The was lower by 1.15%, while the s dropped by almost 2% due to a stronger , and the earnings pre-announcement by Walmart (NYSE:). Adding to the pressure, Shopify (NYSE:) announced it was laying off 10% of its workforce.
It would appear that the S&P 500 head and shoulder pattern was correct, the index fell below the neckline, and that line held as resistance for the rest of the day. I think the index continues to go lower to fill the gap at 3,830.
VIX
The did finally move up yesterday and managed to close around 24.7. It is not surprising to see the VIX rise, given that there is an FOMC meeting. Honestly, I would have expected it to be much higher. Going into every FOMC meeting this year, it has been above 29. This is by far the lowest closing price for the VIX this year, one day before a meeting.
Dollar
The is in an interesting position heading into the FOMC, sitting below resistance at $107.20. It will be interesting to see what happens today and where the dollar goes. If it clears resistance and holds it, I think the dollar could go back to its recent highs.
Alphabet
Alphabet (NASDAQ:) reported that came in below expectations but weren’t a disaster, so the shares rose slightly. But the stock is reeling at the bottom of the flag pattern I pointed out the other day. I’m not sure these results change much. The company is noting FX headwinds, tough comps, and a pullback in ad spending as potential third-quarter headwinds.
Shopify
Shopify (NYSE:) reports today but announced it was cutting 10% of its workforce yesterday. That sent the stock sharply lower, back towards support. The stock has been trading sideways for months, and the RSI is powering higher, creating a bullish divergence. As long as the stock can stay above $29.5, I think it is building a base. If that support breaks, then I don’t know.
Adobe
Adobe (NASDAQ:) has been consistently rising in a trading channel over the past few weeks. But overall, a long-term channel is falling and a longer-term downward trend in the RSI. If the stock can hold on to $380, it can churn higher. If not, the shares may fall towards the lower end of the long-term channel.
Microsoft
Finally, Microsoft (NASDAQ:) traded higher after the company said it was looking for full-year double-digit revenue growth; expectations were about 14%. The company downgraded its outlook for the fiscal first quarter based on analysts’ expectations, but shares jumped. It makes zero sense to me, but after-hours trading is a joke most of the time anyway. So let’s see if it holds today.
Have a good one.
Original Post
Add a Comment
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.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.