Take’em Up Tuesday became Turn Around Tuesday pretty quickly. I think the S&P 500 rose to around 2,760 and finished at 2,660, a nice intraday 3.5% plunge. Again, these rallies as sharp as they maybe can not be trusted. I don’t see any other way to put it. These are short-term rallies, in a longer-term downtrend.
With earnings estimates likely only heading lower, the S&P 500 is getting somewhat expensive at current levels. I don’t see how the current earnings picture will continue to support the S&P 500 at its current level. Premium content – Stocks Set To Rally, But Options Still Betting It Doesn’t Last
S&P 500
The index rose right to downtrend at 2,760, in what appears to now be a giant broadening wedge pattern with my short-term target of roughly 2,500.
Disney (DIS)
Walt Disney Company (NYSE:DIS) looks like it may have doubled topped on the intraday chart and that likely means it is heading back to the lows around $78. Disney’s business is getting hit from every angle currently from the virus.
Nvidia (NVDA)
NVIDIA Corporation (NASDAQ:NVDA) reversed lower, and now it looks like it can move to that gap around $245.
Starbucks
Starbucks Corporation (NASDAQ:SBUX) has a similar pattern, and I think it results in a similar outcome with a drop towards $60.
Zoom
Zoom Video Communications Inc (NASDAQ:ZM) is getting closer to $105; maybe it gets there tomorrow.
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