Stocks Will Attempt To Rebound But Face Stiff Resistance
Michael Kramer | Sep 14, 2020 08:00AM ET
Stocks are rising a bit this morning following last week’s sharp decline. Despite the gains, it is doesn’t mean there won’t be plenty of tests along the way. Currently, the S&P 500 500 ETF (SPY) is trading higher by 80 bps to around $336.75 and approaching a critical level of technical resistance around $337. So while we are seeing gains this morning, the ETF will need to clear this essential level of resistance. Should that happen, then the ETF can go on to rise to around $342. If it should fail to clear that resistance level around $337, it is likely to result in a drop back to $333, and potential lower to around $329.40.
Meanwhile, the significant level of resistance for the QQQ comes around $275.
Micron (NASDAQ:MU) is rising in the pre-market after being upgraded to buy from neutral at Goldman Sachs (NYSE:GS). However, the price target remains unchanged at $58. The stock has struggled around the $48.30 level, and if it can manage to push beyond that price level, it could go on to around $49.80.
Nvidia (NASDAQ:NVDA) is rising 6% after it has agreed to Buy Softbank’s ARM unit for $40 billion. It seems like Nvidia’s new growth avenue has come through acquisition. But the market is reacting positively, for now, rising to $517.50. That is a significant level of resistance, with a break out possibly sending the shares higher to around $572, and gap fill. A failure to advance beyond $518 likely sends the stock lower back to $460.
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Oracle (NYSE:ORCL) is rising on hopes it acquires TikTok after Microsoft (NASDAQ:MSFT) said its bid was rejected. Microsoft is trading a bit lower today, while Oracle is trading higher. As of right now, Oracle is trading up at an all-time high around $62.
That’s going to be all for this morning.
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