SPY Consolidating at November Resistance
The S&P 500 rallied for the past 10 weeks, leaving SPY at resistance on week eleven (11). During that time the index gained 20.58%, reaching a high of 281.87 in the Monday session.
SPY Weekly
Wicks at the lows of the past two weekly candles suggests buyers are still present at or above 276.84, up to and including the high (281.87) of the week. MACD while still bullish, is showing signs of slowing as MACD histogram begins to flatten. RSI is above 50.
Starting last week, we began taking profits into strength as the indices continued to rally higher. Our intention was to buy new stocks that are beginning to see momentum turn in their favor.
Facebook (FB), as an example, faded or consolidated the gap higher over 15 plus trading days. Lately the stock has shown some persistence in holding the current consolidation zone, while pushing a bit higher in the Monday session. As a result, we are anticipating price appreciation above current levels, targeting 168.34 and 172.47 in the short-term.
Traders have shown an appetite for Amazon (AMZN) and Alphabet (GOOGL) lately, as these two stocks trend higher. Watch for continuation today, as they are both trading higher in the pre-market session this morning.
Apple (AAPL) is grinding the 175.50 (+/-) zone, with a slower ascent compared to the former two FANG stocks. Meanwhile, Netflix (NFLX) has been trending lower, searching for buyers near 350.00 (+/-). The remaining stock in this momentum group, Nvidia (NVDA), consolidated for the past eleven (11) trading days, as it trades lower in the pre-market session.
Target (TGT) is gapping higher (+6.30%) this morning, along with Kohls (KSS) with its own gap (+5.54%). Both companies reported strong earnings and bullish guidance. Walmart (WMT) is a bit higher as well.
BEST Inc. (BEST) is higher (+9.13%) this morning after the company reported financial results for Q4 with a earnings and revenue topping and list expectations wow providing revenue guidance above street estimates.
Ctrip.com (CTRP) is higher in early trading(+12.32%) as revenue increased by 22%.
Salesforce (CRM) also reported earnings last night. Initially the stock was lower after hours, however this morning the stock is moving off the lows (+0.38%), back above Monday’s close. Keep an eye on this stock and others in the enterprise software industry group. These stocks took a hit yesterday and may provide a short-term opportunity. WDAY, SPLK, ADSK.
Join us today in the trading room for our LIVESTREAM broadcast during market hours, as we trade these fresh momentum positions and earnings winners. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
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