The S&P 500 finished Wednesday lower by 1.2%, and the NASDAQ fell by around 70 bps. It was a sleeper most of the day, with the action coming in the final hour after NYC announced it was closing school and going to remote learnings.
I’m not sure if the two are linked or coincidence; after all, I have been saying over the past week how burnt out this market is, and yesterday was no different, except that the sellers finally came in.
S&P 500 (NYSE:SPY)
There is still plenty of room for the S&P 500 to fall, and it could easily be back around 3,200 in the blink of an eye, erasing all of the post-Presidental election move higher. If not for the implosion in volatility that week, I’m not sure we should have rallied as much as we did. With the VIX falling below 22 yesterday, we are at the bottom of the barrel when it comes to volatility squeezing the market higher.
This is just another narrative we can add to the laundry list of reasons why the stock market is beyond exhausted.
Tesla
Well, we knew everything for Tesla (NASDAQ:TSLA) hinged on the stock rising above resistance at $460. It did that yesterday, and the stock went to $487. The next level to watch for comes around $505, and the all-time high.
Microsoft
Microsoft (NASDAQ:MSFT) may be heading lower, back towards $198.
AT&T
AT&T (NYSE:T) is back to resistance at $28.90, and I really can’t find much to like about this company. They seem to do a lot of things the wrong way, based on some previous acquisitions. Watch for the gap fill back to $27.50.
