From Take’em Up Tuesday To Turn Around Tuesday

Take’em Up Tuesday became Turn Around Tuesday pretty quickly. I think the S&P 500 rose to around 2,760 and finished at 2,660, a nice intraday 3.5% plunge. Again, these rallies as sharp as they maybe can not be trusted. I don’t see any other way to put it. These are short-term rallies, in a longer-term downtrend. 

With earnings estimates likely only heading lower, the S&P 500 is getting somewhat expensive at current levels. I don’t see how the current earnings picture will continue to support the S&P 500 at its current level.

S&P 500 (SPY)

The index rose right to downtrend at 2,760, in what appears to now be a giant broadening wedge pattern with my short-term target of roughly 2,500. 

Disney (DIS)

Disney looks like it may have doubled topped on the intraday chart and that likely means it is heading back to the lows around $78. Disney’s business is getting hit from every angle currently from the virus. 

Nvidia (NVDA)

Nvidia reversed lower, and now it looks like it can move to that gap around $245. 

Starbucks (SBUX)

Starbucks has a similar pattern, and I think it results in a similar outcome with a drop towards $60. 

Zoom (ZM)

Zoom is getting closer to $105; maybe it gets there tomorrow. 

Have a good day