Stocks Will Try To Rally Today, But It Likely Won’t Last
Michael Kramer | Sep 22, 2020 07:36AM ET
Stocks are rebounding some this morning with the S&P 500 ETF (SPY) up around 35 bps, certainly not the strongest of rebounds following the sell-off the past couple of sessions. Meanwhile, the NASDAQ 100 ETF (QQQ) trading up to around $270 or 90 bps.h2 S&P 500/NASDAQ 100 /h2
This shouldn’t be confused with some significant rally attempt by the market, this seems more like a bounce than anything else, and we will find out very quickly after the open if the sellers come back. It seems likely that once we get past the open, we will see the sellers return and work to fill the gaps lower.
Resistance on the Qs is around $272, with a push beyond that price likely helping to fill the gap up to $275. Meanwhile, the SPY could quickly rise to $330, and that is likely where it fails, with resistance at that price.
Germany (NYSE:EWG) is rising today by about 1% but struggling to get past resistance at 12,700.
Meanwhile, the South Korean Kospi (NYSE:EWY) was smashed, falling about 2.4% and below that significant uptrend off the March low, and closing right above the 50-day moving average.
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Amazon (NASDAQ:AMZN) has a gap that needs to be filled around $3,100 before making its next turn lower.
Meanwhile, Netflix (NASDAQ:NFLX) is rising today, but I don’t expect it to get much beyond $495.
Apple (NASDAQ:AAPL) is trying to rally past resistance $110. Even if it does, $115 will be a challenging level for the stock, and I still think this one is heading lower still to around $96.
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