The S&P500 and SPY peaked late Wednesday evening at 2800/280, the largest gamma weighted OI strike. We continue to see resistance at this level until a catalyst firmly rejects the bulls or prices run above on some foreseen event. The risk is still weighted to bearish price action.
Bulls do have the benefit of recent price action closing above Tuesday’s largely red day. Shorts covered at the 21d keeping the ETF above the absolute low. The result was a move higher and close above the 9ema.
We still believe price can be contained in this narrow band above the red line (23.6% Fibonacci) and the previous high set at 287.30.
Major resistance at gamma weighted strikes overhead aligns with the 50d, 61.8% Fibonacci, and ultimately the 200d at 301.34.
Bulls have their work cut out for them. Perhaps the catalyst to move higher will be States reopening their collective economies over the next few weeks. Stocks are meandering higher in the interim.
S&P500 (SPY) Most Active Stocks
While the S&P500 gyrates at this level, crude oil exploration and production stocks populate the most actives for another day.
APA, FANG HAL, HES, FANG, and PXD were active this week. Click on the symbols above for the respective charts.
Look for higher lows and volume in these names.
Watchlist – Top 10 Results
The watchlist stocks outperformed again on Wednesday, with the top 10, ranked by percent gain, hailing from the Semiconductor and Technology industry groups.
|ENTG – Entegris, Inc.||Semiconductors||51.05||8.02|
|AMAT – Applied Materials, Inc.||Semiconductors||52.11||7.82|
|GLOB – Globant SA||Software||104.45||7.41|
|KLAC – KLA Corp.||Semiconductors||158.68||6.79|
|FB – Facebook, Inc.||Internet||182.28||6.72|
|NVDA – NVIDIA Corp.||Semiconductors||286.15||6.17|
|AMD – Advanced Micro Devices, Inc.||Semiconductors||55.92||5.67|
|WDAY – Workday, Inc.||Software||145.82||4.05|
|EPAM – EPAM Systems, Inc.||Software||200.81||3.52|
|MSFT – Microsoft Corp.||Software||173.52||3.40|
Look for continuation in these stocks as INTC reports after the close.
If we see strength in all sectors again today, that could be another catalyst to push the S&P500, Nasdaq, and Russell 2000 higher this week.
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