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Stocks Gap Lower And Stay Lower

By Michael KramerStock MarketsApr 20, 2021 02:07AM ET
www.investing.com/analysis/stocks-gap-lower-and-stay-lower-200574046
Stocks Gap Lower And Stay Lower
By Michael Kramer   |  Apr 20, 2021 02:07AM ET
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Stocks fell some on Monday; certainly nothing too dramatic.

The S&P 500 finished the day lower by around 60 bps, while the Qs—Invesco QQQ Trust (NASDAQ:QQQ)—dropped by about 1%. The level of resistance on the S&P 500 around 4,185 managed to hold yesterday. It was never even tested, with the index gapping lower to start the day. It leaves an open gap that needs to be filled. Ideally, this gap gets filled today.

This would tell us a lot about which direction the market is going to move from here. If it doesn’t get filled, it doesn’t mean much at this point.

S&P 500 Index Chart
S&P 500 Index Chart

NASDAQ Composite

The NASDAQ Composite did fill one gap on Monday and found some decent support at 13,860. There was also a gap to fill at 14,050 too. There are plenty of gaps to fill at lower levels as well. At this point, there is a lower high on the RSI that was created Monday, which could be a significant signal. Again, today should give us a lot more insight into what happens next.

Nasdaq Composite Index Daily Chart
Nasdaq Composite Index Daily Chart

Volatility

The VVIX volatility index also continued to push higher.

VIX 1-Hr Chart
VIX 1-Hr Chart

Nvidia

NVIDIA (NASDAQ:NVDA) was down sharply Apr. 19 after the UK raised a national security concern to the company’s proposed acquisition of ARM. I figured at some point this would come up. I wasn’t sure it would be the UK; I was thinking maybe China. But we will have to wait and see what the remedy is, as it threw the good news from last week into the back seat. I still think the stock heads lower back to $450.

NVIDIA Corp Daily Chart
NVIDIA Corp Daily Chart

Square

Square (NYSE:SQ) fell hard yesterday after Bitcoin’s big decline over the weekend. The 50-day moving average appeared to be very important at the moment, and if it breaks, there will likely be a retest of support at $200.

Square Inc Daily Chart
Square Inc Daily Chart

Micron

Micron Technology (NASDAQ:MU) continued to meltdown. It, too, was testing support at the 50-day moving average. For now, it must continue to hold to avoid a further drop back to $85.50.

Micron Technology Inc Daily Chart
Micron Technology Inc Daily Chart

IBM

IBM (NYSE:IBM) was moving up after hours following quarterly results that were better than expected. The big question is if the stock can hold the breakout at $136; if so, there is a good chance the stock will climb back to $150.

IBM Daily Chart
IBM Daily Chart

Original Post

Stocks Gap Lower And Stay Lower
 

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Stocks Gap Lower And Stay Lower

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