After Stocks Stall, A Break Out May Be On The Horizon

After Stocks Stall, A Break Out May Be On The Horizon

Michael Kramer  | Feb 12, 2019 12:57AM ET

Stocks had a rather quiet day with the S&P 500 flat. The good news is that stock held their gains for the late-day rally on Friday. The bad news, the index is struggling to rise above 2,716.

The index moved and failed right at resistance at the start of the day. It is consolidating nicely at these prices, and it seems to be forming a bullish flag, a continuation pattern. It would suggest to me we do rise above resistance at 2,716, and test 2,730, while also filling that gap from last week — more on gaps to come.

S&P 500 Chart

Russell 2000 (IWM)

We can see that a similar setup in the Russell 2000 came and went, with the Russell breaking out and on the way back to 1,524.

Russell 2000

So it seems to me that the S&P 500 is going to be more than fine going forward. I think last weeks sell-off on Thursday was nothing but noise. It looks like I have been proven correct, although I could be proven wrong tomorrow.

Tesla (TSLA)

The Tesla Inc (NASDAQ:TSLA) stock is having a tough time getting over the $318. It appears that there may be a downtrend in place, which surprising to me. The RSI continues to point to higher prices, so I am sticking with a bullish outlook on the stock and rise back towards $333.


Amazon (AMZN)

Don’t get too excited if you have Inc (NASDAQ:AMZN); I have some bad news for you. The stock is struggling at this $1620-ish level. The RSI has a clear trend, and it isn’t higher –that’s for sure.

But here’s the thing, the RSI is more of a long-term trend lower. What I am seeing now is that the stock has the potential to rise with that falling wedge. It suggests Amazon could break out and first rise to around $1680 before moving lower again.


Nvidia (NVDA)

NVIDIA Corporation (NASDAQ:NVDA) reports on Friday, and as I noted this morning, the setup looks pretty bad.


Activision (ATVI)

Activision Blizzard Inc (NASDAQ:ATVI), gap filled! Next stop $35.80?


Goldman (GS)

Do all gaps get filled? Watch out Goldman Sachs Group Inc (NYSE:GS) $183 is on the horizon.

Goldman Sachs

Morgan Stanley (MS)

Can you believe that Morgan Stanley (NYSE:MS) is on the verge of a breakdown that could result in the stock retesting its Christmas Eve lows?

Morgan Stanley


Watch out inflation; the dollar is on the move. That looks like a double bottom in the dollar index and that means we may be seeing a rise back to 100 on the index soon. Kiss your inflation worries goodbye, and forget about any more rate hikes in 2019, should the dollar keep going up. Draghi wins again. What will the ECB do when his term is over?

US Dollar

It means that how copper trades will be even more critical because a strong dollar should weaken copper prices. So if copper should continue to rise, it tells us something about global growth.

Copper Chart

Disclaimer: Michael Kramer and the clients of Mott Capital own Tesla

Original post

Michael Kramer

Related Articles

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (UK) English (India) English (Canada) English (Australia) English (South Africa) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes