S&P 500 Closes Week Below Critical Technical Support. What Next?
Michael Kramer | Sep 21, 2020 04:39AM ET
The S&P 500 finished the week below its 50-day moving average and critical technical support. It makes this a crucial week for the market.h2 S&P 500/h2
Should the S&P 500 firmly drop below 3,300, it likely sets up a further drop to around 3,260, and then to about 3,180. The area around 3,340 should now act as a severe level of resistance for the S&P 500 going forward.
Amazon (NASDAQ:AMZN) is likely not finished falling and heading towards $2,800. Volume levels have been surging, which indicates more sellers are coming out; the stock is not even oversold yet.
Nvidia (NASDAQ:NVDA) shares have been falling and are likely heading even lower from here. The stock is resting on a significant uptrend, and once that brakes, the shares are likely to fall sharply. Volume levels have surged, the RSI is heading lower, add in some bearish option betting, and this stock is likely heading 15% lower from here.
Salesforce (NYSE:CRM) is likely heading lower from here, as it sits on support at $240, with that monster post-earnings gap that needs to filled down around $219.
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Apple (NASDAQ:AAPL) also finished the week below crucial support around $108; as I highlighted earlier this week, there is a good chance this one is heading to $96.
Advanced Micro Devices Inc (NASDAQ:AMD) finished the week off just below its 50-day moving and nearing support at $71.70. A break of support at $71.70 probably pushes the shares lower to around $59.
JPMorgan Chase & Co (NYSE:JPM) is very close to breaking critical support at $97.50. If that level breaks, watch for $88.50.
Citigroup (NYSE:C) has been slammed, and it likely isn’t finished, potentially falling to $41.20.
If Square (NYSE:SQ) breaks that uptrend, it is a very long drop to $118. I think it does fall.
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