Stocks Drop As The Reversal May Now Be Here
Michael Kramer | Mar 24, 2022 01:03AM ET
Well, stocks fell yesterday, with the S&P 500 finishing lower by 1.2%. The index opened lower by gapping below the trend line as I noted in yesterday's write-up. The index tried to rally off the lows, midday, but by day’s end, after a five-day break, the sellers finally decided to wake up and go back to work.
The fact that the index gapped below the trend line and then finished the day below yesterday’s opening isn’t a positive sign and should lead to lower prices in the days to come. The next level of support I am looking for is at 4,440. If that level breaks, we could easily slip back into the 4,200s.
The Invesco QQQ Trust (NASDAQ:QQQ)s also broke their uptrend Wednesday, and for now, I am looking for a drop back to $348.
Amazon.com (NASDAQ:AMZN) tried and failed to get above $3,310 resistance. That makes two days in a row of failure, making Thursday critical for this one.
The green pastures that lay ahead for NVIDIA (NASDAQ:NVDA), if it got above resistance at $268, dried up and turned brown yesterday. The stock failed for the second day in a row to get above resistance, despite seemingly plenty of positive news and hype around their investor day. It doesn’t speak well for what’s to come here.
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Adobe (NASDAQ:ADBE) fell 9% Wednesday after giving weaker than expected guidance last night on its conference call. Overall, the stock has been a leading indicator for this market, and now it is trading about $10 above critical support at $415. If that support breaks at $415, I fear it sends it to $385.
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