Stocks Fall Again And The Russell May Be Signalling A Bearish Sign
Michael Kramer | Mar 07, 2019 12:17AM ET
Stocks were weak once again. We can see in the chart that the S&P 500 is testing its lows from the other day, and for now those lows are holding. At this point, I can’t say I’m overly concerned. A pullback to 2,750 wouldn’t concern me either.
The Russell, now that is a different story. We can see the index has broken its uptrend and a drop below 1,530 clearly triggers a steeper decline to 1,492. Diverging indexes are never a good sign. We really need to see the Russell stabilize here. I would get more nervous over the short-term should the Russell crack below 1,530. It would likely signal a steeper pullback for the S&P 500 too. We will need to monitor.
The SPDR S&P Biotech (NYSE:XBI) continues to look really weak, and a drop to $85.25 seems likely at this point.
NIO Inc (NYSE:NIO) shares tanked over 20%. I went through the story this morning . The stock fell right through support at $8.35 and now appears to be on its way to that $7.72 region I mentioned earlier.
General Electric Company (NYSE:GE) also continues to fall, and I noted this morning the stock was facing a decline below $9. This afternoon it seems like those odds just improved for a drop to $8.90.
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AT&T Inc (NYSE:T) continues to look really weak. The stock continues to fall after failing at resistance at $31.20 and suggests a decline to $28.92. In fact, according to data from SmartStops , the equity just entered an elevated risk state indicating there may be further declines ahead.
I have really screwed up this BlackBerry Ltd (NYSE:BB), after weeks of getting it right. I guess I ran out luck. I don’t know; I have to think about this one. The RSI really bothers me though.
Micron Technology Inc (NASDAQ:MU) is another one that has turned against me. This one appears to be entering a region where it should find support around $36 and bounce.
Advanced Micro Devices Inc (NASDAQ:AMD) also has turned sour. A drop below $22.80 means $21 is coming.
Amazon.com Inc (NASDAQ:AMZN) is failing at this downtrend. I really thought this time it would break out. We will need to watch this one closely now.
Netflix (NASDAQ:NFLX) is another one that struggled at the downtrend. But I noted today, I was seeing bullish activity in the stock.
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