Stocks finished higher yesterday by around 1.2% in what seemed to be a rebound day from oversold levels. There was no clear catalyst for the strong day. It had been up by nearly 1.5% following the better than expected ISM report, but even that couldn’t keep stocks move higher all day. It was a rather dull day overall.
Perhaps there is some nervousness or positioning ahead of the election. It seems unclear to me what yesterday was about. There was a rotation out of the tech and into the reflation sector. Without knowing what the government’s makeup will be it seems too hard to know if and how people are positioning.
S&P 500
The index filled most of the gap from the morning opening but couldn’t fill it all the way. It leaves open a possible retest of that level today. Additionally, we still have to contend with a potential double top pattern working its way out. It will take a drop below 3,200 to trigger what would be a signal for a steeper drop.
Nasdaq
The Qs did continue to move lower yesterday, rising by 35bps. At this point, it continues to really trend lower in a fairly well-defined channel. There is a possibility the path is beginning to shift to something that suggests a steeper downtrend.
AMD fell below $75 yesterday, and now that price is likely to act as resistance. A failure at resistance likely sends the stock on a path even lower, to $69.
Shopify
Shopify (NYSE:SHOP) continues to trade very poorly and is sitting on support at $910. That is crucial because when it breaks, it shall drop towards $850.
Microsoft (NASDAQ:MSFT) is very close to breaking down, with support around a price of $198. After that, it seems likely to drop to around $187.
Skyworks
Skyworks (NASDAQ:SWKS) posted blow-out results and guidance. It seems that most of the good news must-have been priced in already, with the shares hardly moving higher. I owned this stock for so many years, waiting for the 5G rollout. It seems that business is doing well and 5G is helping them. I’m just sorry I sold the stock 6 months ago. Live and learn.
