S&P 500 (SPY)
Stocks were in rally mode today with the S&P 500 rising by over 1.25% and over 2,740. It was two trading days ago that market fell sharply and everyone was panicking. I wrote that evening I thought we were one and done. Not only did we recoup all of those losses but are now higher. Of course, I can write that with confidence now because we know the outcome.
The good news; not only did the index break out and rise above 2,740 but, it is now also back into the trading channel that started at the market bottom in January.
Additionally, the RSI did finally break out, another positive sign that a long-term trend change has taken place. Based on that rising path of that channel the S&P 500 may reach 2,800 by Friday or Monday.
Now that we are getting closer to 2,800, we should refine that number a bit, because technical resistance rests around 2,795, so we will call the 2,795-2,800 resistance zone.
The only problem I see is the gap created this morning, and it is something we could refill later this week or next week, it could even be tomorrow. I just don’t know when it gets refilled, but I would be shocked if it didn’t get filled.
Housing Index (HGX)
The PHLX Housing also broke out today rising 3%. Now the next big test comes at that massive downtrend which has been in place since April.
Biotech (XBI)
The SPDR S&P Biotech (NYSE:XBI) looks like it may be the next sector to break out as the XBI approaches resistance at $85.25.
Ultragenyx (RARE)
Ultragenyx (NASDAQ:RARE) is one of the stocks that looks like it is nearing a pretty big break out of its own around $56. If that happens, the stock may rise to a price of around $60.50.
Roku Inc (ROKU)
I think Roku Inc (NASDAQ:ROKU) has its eyes on the giant gap up around $56.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) broke out, and it appears it is on its way towards $1,700 to the downtrend. I think the longer-term is still lower. I noted the falling wedge and the potential for the current rise yesterday and this morning.
Netflix (NFLX)
Netflix (NASDAQ:NFLX) is once again on the verge of a breakout, closing today at $360. Still, if the stock can finally get above this $360 level successfully, it has room to go to around $380 hopefully.
Facebook (FB)
Should Facebook (NASDAQ:FB) drop below $164, the next stop could be somewhere around $157, and that raises a real chance the entire gap gets refills.
