Russell Breaks Out, More Gains May Be On The Horizon
Michael Kramer | May 05, 2019 01:26AM ET
Another day, another record –ok, almost. The S&P 500 closed a fraction below the record it set on April 30. Friday's big rally followed the blockbuster jobs report that came in well ahead of expectations. It fueled a rise at of about 1% for the S&P 500. But the real stars today were the small-cap stocks as signs that the US economy is not only healthy but may be strengthening.
The Russell 2000 finally broke out after weeks of watching it struggle around 1593, it finally smashed through it and jumped a full 2% on the day.
How big was the breakout today, it was tremendous. Look at this clean chart below with just one line on it –well two lines. You can see how the 1,590 region has been the source of significant resistance, with multiple failures. Well, today that was not the case, make no mistake this was a massive breakout in my opinion.
Where does it go next? I’m thinking 1,640.
The biotechs had a good day too and managed to bounce off technical support at $85.30. My hunch is it results in the ETF rising back to around $90.
I made a minor adjustment to the Advanced Micro Devices Inc (NASDAQ:AMD) chart, but it doesn’t change my view. I still think the stock is heading to around $31.40.
Amazon.com Inc (NASDAQ:AMZN) finally got the boost it needs to get the stock heading towards $2,025.
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What happens to stocks that don’t go down when the broader market is falling? They go higher, which is exactly what Netflix Inc (NASDAQ:NFLX) is doing now. The stock acted very well over the 2-day mini sell-off. Could a big break out be on the way? Maybe.
That Alibaba Group Holdings Ltd (NYSE:BABA) breakout is picking up steam and $201 is coming.
Jd.Com Inc Adr (NASDAQ:JD) hasn’t broken out yet, but it seems to be coming.
Qualcomm Incorporated (NASDAQ:QCOM) continues to go, and the stock is breaking out yet again. $100 appears to be on the way.
Well, amazingly Tesla was not only able to raise the $2 billion it initially set out to do but managed to up-size the deal. The biggest problem with the bear thesis or at least the calls for the stock to be worthless assumes that Tesla Inc (NASDAQ:TSLA) can’t raise the capital it needs to fund operations. But yet again, Tesla manages not only to raise what it initially needed but even more. It would also seem that stock may have put in a bottom.
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