50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

Stocks Fill The Gap, But We Are Not Out Of The Woods Yet

Published 01/24/2020, 12:20 AM
Updated 11/16/2024, 07:53 AM
US500
-
INTC
-
SPY
-
NVDA
-
FCX
-
NFLX
-

S&P 500 (NYSE:SPY)

Stocks were in a filling the gap mood again today, but this time it is filling up, instead of down. While the recovery off of the session lows was exciting, it didn’t convince me that all is perfect. Two main things worried me about today’s price action.

First off, the S&P 500 managed to now fall out of both rising wedge patterns. Also, the index managed to fail at resistance at 3,326 as it filled the gap. Meanwhile, it confirmed the breakdown from the rising wedge pattern and may have formed a new downtrend in the process.

S&P 500 Index

Tomorrow will be a telling day, but the problem is it is Friday. Given the events taking place in Asia right now, I’m not sure how investors will feel about going long into the weekend. Saturday also marks the beginning of the Lunar New Year, and a lot of markets in Asia will be closed starting Friday.

Overall, the rebound today was nice, but I’m not convinced all is back to up. Sorry, I don’t mean to be a downer.

Intel (NASDAQ:INTC)

Anyway, you know who is happy tonight, the Intel (NASDAQ:INTC) Option traders, that is who. Intel is soaring tonight after reporting –you guessed it, a beat and raise quarter! Why A Beat And Raise Quarter May Be On The Horizon For Intel

It was the datacenter that was strong, and that is sending the stock sharply higher, with shares smashing through resistance at $64 and now on track to reach their next level of resistance at $69.

Good for the options guys, I’m sure those contracts will be up a lot tomorrow. Betting Suggests Intel’s Stock Makes A Big Jump, Intel’s Calls Buyers Are Back, Rapid Update On Intel (NASDAQ:INTC)

Intel Corp Chart

Netflix (NASDAQ:NFLX)

Netflix (NASDAQ:NFLX) had a good day, finally snapping back. The way the stock traded higher and finally surged through that horrible resistance zone around $340, closing around $350. The way the stock behaved, it was as if the giant seller sitting on the stock the last two weeks was cleaned-up. Let’s hope it finally fills the gap to $360. See, I told you the trends were pointing to higher prices.

Netflix Daily Chart

NVIDIA Corporation (NASDAQ:NVDA)

NVIDIA Corp Chart

Well, the Intel (NASDAQ:INTC) results are likely a good sign for Nvidia. The stock is rising after hours too. I still think the shares can rise to around $268. Bets Being Placed Nvidia Rises Following Results

Freeport-McMoran Copper & Gold (NYSE:FCX)

Freeport McMoran didn’t do so well for the options traders. I guess they don’t always win. The stock broke down today, finding support at $11.40 and then failing at resistance at $12.05.

Freeport Inc Chart

Original Post

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.