S&P 500 (SPY)
This week kicks off earnings season, and that means the volatility may once again pick up in the stock market. The S&P 500 appears to have a bearish reversal pattern known as a rising wedge, and it suggests that the index may be due to drop this week. It could result in the index filling the technical gap at 2,450.
20-Day Moving Average
Another negative indicator is that number of stocks in the S&P 500 above their 20-day moving average is at 98.3%. That is the highest reading ever!
Russell 2000 (IWM)
There is also the same bearish pattern that has formed in the Russell 2000; the rising wedge. It indicates the index may drop to around 1,160.
Nvidia (NVDA)
Nvidia may move lower this week, I noted some bearish options betting in this past week, and the stock could have a considerable drop ahead with support at $218.
Amazon (AMZN)
Amazon also has that same rising wedge pattern, and it too could be suggesting that Amazon is due to correct back towards $1825.
Facebook (FB)
Facebook also has that similar pattern, and it could even be a bear flag, setting up a decline to around $140.
Bank of America (BAC)
Bank of America reports results this week, and it has successfully filled the gap up to $25.20; and with a break of the uptrend, the stock could fall back to $19.60.
Alibaba (BABA)
Alibaba also has a rising wedge in the chart, and suggests a gap fill down to $188.
Tesla (TSLA)
If Tesla can get back above $595, it has room to climb to around $640.
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