From Break Out To Break Down - Not A Good Set Up Short-Term

MACRO

Stocks had a good day on October 17 rising 35 basis points, that’s the good news. But certainly not the break out I expected, I got it wrong this time. However, I have more bad news. I’m not thrilled with how the chart is setting up. The pop at the open today created an unfavorable setup, which didn’t exist this morning, the dreaded rising wedge. At this point, it something we must pay attention too and must respect. A break of the downtrend and support at 2985 would likely create that gap fill we had been looking for at the beginning of the week, causing a decline to around 2940.

Could it lead to something steeper? Perhaps. But I don’t think that is likely.

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STOCKS

Nvidia (NVDA)

Nvidia has failed at resistance around $198 a few times, and it looks like it wants to retest support at $188.

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UBER (UBER)

UBER continues to move higher, too, and I think $35 is around the corner.

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Alphabet (GOOGL)

Alphabet has very quietly moved back to within reach of its all-time highs. You have to think when this thing breaks out; it has a lot to go up.

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Intel (INTC)

Intel still looks fine despite today’s pullback. I think the stock heads higher.

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Beyond Meat (BYND)

Beyond Meat fell below support at $124 and I think the door has now opened to $100. I talked about why in more detail in this article Beyond Meat’s Plunge May Only Be Starting

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