S&P 500 (SPY)
Stocks had a solid day, rising by, what has become the usual 2%. In a stunning twist of fate, the S&P 500 was never allowed to get back above the uptrend it broke Tuesday. It was like the algo’s were only willing to give the buyers so much. So we just ground higher all-day, moving up along the trend line. It was pretty amazing to watch.
S&P 500 Index
The XLK Technology ETF was able to fill the gap created from Tuesday’s sharp drop, but not a decimal point more.
NASDAQ 100 (QQQ)
The QQQ ETF saw the same price action.
QQQ Daily Chart
But the best was saved for last. With 10-minutes left in the trading session, there was a buy imbalance worth a little more than $2 billion. With all those buyers locked, the sellers just moved in a show of force, resulting in the index dropping by about 60 basis points.
S&P 500 Index Chart
Overall, the S&P 500 has gone pretty much nowhere since April 6. Today we get jobless claims, and they are expected to be a significant number once again with another 4.2 million people filing for unemployment. I think that gets us to around 25 million. The US labor force is approximately 162 million, and I think there had been about 3 or 4 million unemployed going into this disaster. So we could have almost 30 million unemployed, getting us pretty close to 20%. That isn’t counting all of the people that work off the books. It is stunning and unfortunate.
I saw some more bearish betting Wednesday in Qualcomm (NASDAQ:QCOM), and I think the stock could be heading towards $65.
Qualcomm Inc Chart
Netflix (NASDAQ:NFLX) can confirm a double top if it falls below that $415 level, and it likely triggers that move lower to around $385 I have been looking for.
Netflix Inc Chart
One should look at Netflix as an example of what may be coming to Amazon (NASDAQ:AMZN). Amazon may put up big numbers or provide fantastic guidance for the second quarter but it is expected. So, you can very quickly get a sell the news event after Amazon reports. Something to think about. For now, I’m targeting 2,185.
Amazon Com Inc Chart
Stocks Jump On April 22 But Are Still Dangling From The Edge
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