Stocks Snap Back, At Least For One More Day
Michael Kramer | Jun 23, 2021 01:04AM ET
Stocks rallied Tuesday, with the S&P 500 up by 50 bps, taking the index back to where it was before the Fed. Overall, nothing has really changed, it just seems like moves from last week were sudden and violent, and for the most part, the market seems to be reverting to some degree.
Can it continue to push higher? I suppose, as long as the reflation assets can rebound further. However, I’m not sure how much further they can rise because bonds and many spreads are still weak.
h2 S&P 500 Futures/h2The S&P 500 Futures may have completed a wave B yesterday, which means that we will likely see a reversion lower the rest of the week back towards Friday’s close.
Goldman Sachs Group (NYSE:GS) has not rebounded along with the broader S&P 500 index. The stock has done nothing and remains in a downward trend.
Maybe the reflation trade for the banks is over; it sure seems that way. It certainly would make sense if that were the case. The region around $350 appeared to be really important, and if it breaks, Goldman’s stock has quite the distance to drop.
Freeport-McMoran Copper & Gold Inc (NYSE:FCX) has been on the rebound from last week’s pounding. As a result, the stock probably has a good chance to rise back to resistance at $36.50.
United Parcel Service (NYSE:UPS) can still rise a little bit more; maybe it gets back to $210.
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FedEx (NYSE:FDX) got back to its 50-day moving average, and that was where it stopped. The 50-day is a big resistance area for now, so any hopes for a further advance will weigh on that moving average.
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