Stocks stalled yesterday, certainly not the steep decline I had thought might start the day. Nothing ever goes according to plan. There were some key developments that I think strengthen the thesis and that stocks are due for a minor drop. Like I said Tuesday, this isn’t the start of some “end of days correction,” just a one or two or maybe three-day pull-back.
NASDAQ (QQQ)
The Invesco QQQ Trust Series 1 (NASDAQ:QQQ) did drop outside of the rising wedge yesterday. We also did not recover the day's highs. Again, this continues to point to a decline in the index to around 7,430 about 1% lower than its current value.
S&P 500 (SPY)
The S&P 500 was up about 20bps on February 20. We can see the S&P 500 is having trouble at 2,790 and has stalled their multiple times since February 19. We can also see that the S&P 500 closed right on the uptrend. Again, this would suggest that the odds are very high for a pullback to around 2,750
If the market doesn’t pull back and keeps going higher over the next couple of days, then that would make me even more bullish than I had previously been. I guess we have to see.
Copper
Copper prices continue to surge and yesterday’s move higher puts the metal on the cusp of a big break out should it rise above $2.91, placing it on a course to $3.01
Oil
I had noted on Sunday that it appeared that Oil was on the rise to $57, and yesterday it rose above $57. The next major level of resistance is around $61, and that is where it is likely heading.
Blackberry (BB)
BlackBerry Ltd (NYSE:BB) had its first significant setback in some time failing at resistance at this $8.70ish price region. The good news is that the stock found support around $8.50. But it has to bounce off $8.50, otherwise, we can confirm the uptrend is broken, and that means a steep decline perhaps to around $8.10. Clearly, for now, my luck in Blackberry (TO:BB) may have finally run out, and that means a rise to $8.90 is in trouble too.
Apple (APPL)
Apple Inc (NASDAQ:AAPL) may have broken out yesterday I think, and I hope that it signals the stock is likely to continue on its way higher towards $182.
Tesla (TSLA)
Tesla Inc (NASDAQ:TSLA) still can’t break out, but it continues to hold $300 like a rock. Something has to give at this point. Either the stock is on its way back to $330 or it has further to fall to $290. There is no in-between anymore.
NXP Semiconductor (NXPI)
NXP Semiconductors NV (NASDAQ:NXPI) is very close to breaking out, closing a hair below resistance at $94.75. Should a break out occur the stock has room to run towards $106.
Banks (BKX)
The BKX are getting closer to that 103 level we talked about a week or so ago on the BKX.
