It will not be a busy week in terms of economic newsflow, but we will likely see a great amount of volatility. Markets will still be trying to figure out what the potential impact of the coronavirus is on the economy. But investors will get their first taste on Friday night when China will release its official manufacturing PMI.
S&P 500 (SPY)
The S&P 500 created a couple of reversal patterns, with two falling wedges, and a potential double bottom. We may get a better sense of things once the futures open, and Asia starts trading. There are several levels of support in the index at 3,316, and then 3,300, with a big gap fill down around 3,260.
If the index should rise, and the reversal patterns prove to be correct, the index can increase to around 3,373.
Amazon (AMZN)
Amazon’s cup and handle pattern vanished rather quickly after falling through support at 2,134. It likely means that the shares retest support and the prior all-time highs of roughly 2,050.
Alphabet (GOOGL)
Alphabet (NASDAQ:GOOGL) broke support and is now likely to test support at $1,430.
Apple (AAPL)
Apple (NASDAQ:AAPL) has been dropping, and now the RSI is trending lower, and it means that the stock is in a period of consolidation. The stock is at support at $311, and the next significant level of support comes around $308. If the uptrend breaks, we could see some further downside in the stock, potentially to the $290 region.
Netflix (NFLX)
The RSI on NFLX continues to trend higher, and I think that means the stock continues higher, pushing towards $400.
Nvidia (NVDA)
I continue to believe that Nvidia will fall and fill the gap at $273.
Acadia (ACAD)
Acadia will report results on Wednesday, and I’m hoping to hear something about a pre-sNDA meeting with the FDA on Dementia-related psychosis. The RSI is now trending higher, and I think this one is heading back to the highs of around $51. I think Nuplazid has a chance of getting an approval for DRP before the end of 2020; I’m keeping my fingers crossed.
