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Some recent Macro and Stock content in my SA Marketplace RTM, first 2 weeks free:
- Biotech, Health Care Cracking
- Stocks Crack
- Paving A Longer-Term Move Higher For Stocks
- Micron Will Be The Key To The Week Of September 22
- Market Showing Cracks, Plus Netflix And Roku
- Momentum Vs. Value Is Back
- Facebook May Be Breaking Out
- The Stock Market Rally May Be Nearing A Peak
For the week of September 30 - Stock mentions SPY, XBI, SMH, AMD, AMZN, FB, MU
Stocks fell on Friday with the S&P 500 dropping by 50 bps on the news Trump was now thinking about limiting the ability of Chinese companies to list their equities on the US markets. It likely won't happen, in my opinion. This is just a typical pattern of increasing the hawkish rhetoric ahead of a trade meeting. It serves as a reminder to China that there are plenty of other ways for the US to mess with them other than tariffs.
S&P 500 (SPY)
The good news is that the S&P 500 continues to find support where it is supposed too. On Friday that level was around 2,950. However, the bad news is that resistance continues to plague the index at 2985. It is becoming pretty clear to me at this point that a descending broadening wedge or falling megaphone pattern is forming in the index. Based on what I can tell, this appears to be a bullish pattern.
We have seen similar patterns in the charts form in the past, and at least the two other times have resulted in a move higher.
The biotech group continues to get slammed. It seems the XBI is looking to refill that gap from January.
The semiconductor SMH ETF doesn't look very bullish at the momentum, with a potential triple top that has formed. We need to monitor this ETF very closely.
But if you want to see something even worse, check out the SMH relative to the SPY. Pretty amazing, right? It is almost as if there are algo's out there saying sell the SMH when it reaches 41% of the value of the SPY.
Micron fell hard on Friday as it should following underwhelming gross margins. The stock broke a bunch of support levels, but the bigger one was at $44.10, and now that means $42 is likely in play
Amazon is also looking weak, and $1700 is the last line in the sand before a steeper decline to $1620 takes hold. The declining RSI would suggest to me that the stock is heading lower from current levels.
Facebook is breaking down, and any hope of the stock rising seems to be lost at this point with $173 on the horizon.
AMD continues its slow grind lower, and the RSI also suggests that the stock continues to move lower as well.
That is all for today.
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