Stocks had a down on August 20. Not the greatest sign for those looking for the index to break out. However, I have not lost much faith. I still believe that we can continue to climb higher in the coming weeks, despite the one-day pullback.
There is the possibility we continue to drift lower on Wednesday, August 21, as the index works its way towards 2890, in an attempt to refill a gap. However, I don’t think that will be the case.
When looking at the S&P 500 e-minis, we can see the futures already filled the gap at 2892 and have started to turn higher once again. It is a positive sign that stock rise once trading resumes on August 21 at 9:30 am.
Again, the big level of resistance for the S&P 500 is the 2935 level, I can’t emphasize enough how important it is that we break out.
The VIX index also managed to stall out at the 17.5 level as well, and that could be a positive sign for equities. As long as the VIX continues to stay below that level, I think stocks move higher.
Another positive is that the Shanghai Composite appears to be nearing a pretty big turn around and potential move higher.
I haven’t followed Sarepta Therapeutics (NASDAQ:SRPT) as much as I use too, but I did see the negative news. The stock fell sharply to support at $96.25, and that managed to hold. But it needs to continue to hold, or the stock could be heading back to $82.50.
Bank of America (BAC)
I still think Bank of America (NYSE:BAC) has further to fall, $25.75 seems like a reasonable level of support. I don’t see how the bank stocks do well in this low rate world.
I’m struggling with what to make of Amazon (NASDAQ:AMZN) these days. The stock seems stable at in the $1770 region, but yet the stock doesn’t go up? The chart almost has a bear flag pattern. We will need to continue to monitor. For now, I’m sticking with my view of $1900. We will see if we get better clarity.
Advanced Micro Devices (NASDAQ:AMD) has failed at $34.50 on many occasions. I think the stock still has further to fall, with the first stop at $29.40.
Jd.Com (NASDAQ:JD) made back to $31.50 and stopped rising once again. There is a big gap to fill at $27.50, be careful.
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