7 Monster Stock Market Predictions For This Week
Michael Kramer | Oct 05, 2020 01:08AM ET
Stocks were up last week but made little headway after Monday’s gap higher. Stimulus talk managed to keep things afloat, but then weakness began to re-enter the markets by Friday after the S&P 500 rejected Thursday’s break out attempt, moving back below the 50-day moving average.
S&P 500
But more importantly, a bearish pattern has formed across the S&P 500 and a number of the leading stocks in the market. The S&P 500 appears to have developed a bear flag/pennant. This negative continuation pattern, suggesting the index is likely to take a leg lower this week, with the critical level to watch for coming at 3,200.
NASDAQ 100
The NASDAQ 100 also formed a bearish rising wedge pattern last week, dropping out on Friday. It would suggest we see lower prices this week, heading towards $265.
Apple
Apple (NASDAQ:AAPL) is just one of those stocks that seem to reflect that same bearish pattern. Meanwhile, a drop below support at $110.50 is likely to lead to a decline to $104.
Amazon
Amazon (NASDAQ:AMZN) is exhibiting that same pattern, with a drop below resistance at $3,100, leading to a decline to around $2,870.
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The same pattern also exists on Facebook (NASDAQ:FB), with the potential for the shares to fall to around $241.
Alphabet
The same pattern also exists in Alphabet (NASDAQ:GOOGL), with the potential to fall to around $1,360.
PayPal
The same pattern is also present in PayPal (NASDAQ:PYPL) with the chance to decline to around $171.
I guess you get the point. The same pattern is in a lot of places.
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