MACRO
Stocks had a lousy day with the S&P 500 falling by roughly 90 basis points. There was a new worry that plaguing the market yesterday, well really it is an old worry, a Trump impeachment.
S&P 500 (SPY)
Regardless I think the market is likely heading lower as we had been talking about for days. All it needs is that nudge, and it got that nudge yesterday. For now the S&P 500 fell to support around 2,960. The next level down comes at that gap around 2935, and gives the markets to test the August break out. It is a region that should offer strong support for the market, assuming there was nothing crazy on the political front.
NASDAQ (QQQ)
The Nasdaq already filled the gap around 7980. We will have to see what happens next. I could make a case with the gap filled for a bottomed to have been reached — or the case for another move lower, perhaps by one or so percent. The one mistake I find I typically make is that things happen faster than I expect, and I tend to have a target that is too high or low. I guess we can find out together.
STOCKS
The goods news is that some of these stocks that have struggled at least had meaningful bounces.
Shopify (SHOP)
Shop fell to support at $285, and that is where the stock managed to find a bounce. It is a positive sign for Shop, but it needs to get back over $315, to signify another important move.
Roku (ROKU)
Roku also tested support yesterday at $100, which it managed to hold.
Perhaps there is some meaning here, maybe not. But a bounce at key levels support is always good to see.
AMD (AMD)
For the moment, support for AMD continues to hold at $29.40. I’m not sure how long that will last. Momentum continues to decline as measured by the RSI.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) broke the uptrend and support at $1750. Now the question is, what happens next? The odds of moving to $1700 are increasing.
Nvidia (NVDA)
For now, Nvidia continues to hold technical support at $171, that needs to hold. A break below that level means $160.