Stocks Getting Crushed, As Critical Support Snaps
Michael Kramer | Jun 15, 2020 07:39AM ET
Stocks starting the week off with another tumble. S&P 500 futures are down by nearly 2% ahead of the open, having fallen by as much as 3% at one point earlier on.
The S&P 500 did an outstanding job for most of the early session to hold critical support around 2,980. But that level of support failed just after midnight, resulting in a decline to around 2,925. With option expiration this week, all of this becomes important, there are significant open interest levels in the S&P 500 cash market around 2,800 to 2,900. These levels could quickly start to pull markets lower, should the sellers begin to have some confidence.
We can see we just tested resistance again around 2,980, and failed. It will likely not a fun first day to the new week.
The VIX is rising as a result of the sell-off and a move back to 54 seems possible.
Uber (NYSE:UBER) broke its uptrend this morning, and that could be a sign of more losses. Now, $30.50 is a significant level for the stock. Should that price break, the next level to watch for does not come until $28.50.
Shopify (NYSE:SHOP) is jumping despite the broader market weakness after getting upgraded by Piper Sandler with an overweight rating and an upwardly revised price target to $843. The area around $790 has been a strong level of resistance for the stock in the last few weeks, so don’t get too excited yet.
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Home Depot (NYSE:HD) is breaking support this morning at $239, and the next significant level to look for comes at $220.
Facebook (NASDAQ:FB) is getting very close to confirming a double-top pattern should it fall below $218.
Hang in there, it likely gets rough the next few days, but we knew this was overdue.
/h2
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