Friday's Lackluster Finish For Stocks
Michael Kramer | Mar 21, 2021 01:11AM ET
It was actually a rather boring day, with the S&P 500 range-bound for most of it. The S&P 500 fell by around 6 bps to close at 3,913. The pattern isn’t that strong overall and is actually very concerning looking.
There is a potential for a double top pattern forming, with a decline below 3,725, confirming it. It is clearly still far away, but markets can move fast. Additionally, the RSI is starting to show serious signs of deterioration.
The VIX managed to close over 21 on Friday, so my 20 being the low end of the range and 3,950-3,960 being the upper end of the S&P 500 continues to remain in play. It wasn’t pleasant at times last week, but that’s just how it goes.
Apple (NASDAQ:AAPL) finished Friday lower and below $120. I’m concerned the stock has further to fall. It has been very weak, and its valuation is not favorable in this higher rate environment. There was a notable bearish bet placed in the stock that I picked up on Friday. I still think that $110 is possible, but the first stop is likely at $116.
I noted on Friday that I thought Wells Fargo (NYSE:WFC) could be heading lower from here for a period of time. The stock has had such a big run, it likely needs a pause, and $33.60 seems like a reasonable place to settle. See my latest article: Wells Fargo’s Bull Run May Be Over.
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