Seven Monster Stock Market Predictions For The Week Of April 20

Earnings season will kick into high gear this week, and it could be the determining factor into which way stocks will move from this point forward.

S&P 500 (SPY)

Momentum for stocks has been undoubtedly bullish these past weeks, and it has resulted in a nearly 14% increase since April 3. The relative strength index has been steadily rising as well, supporting the bullish move higher. However, the next significant level of resistance comes around 2,920, which would also market a 61.8% retracement off the lows. It could prove to be a significant turning point, should the index fail to rise above that resistance level, with support around 2735.

s&p 500, spx

Netflix (NFLX)

Netflix has hit overbought levels with a reading of 70, and the trend now appears to be shifting. The RSI failed to make a new high, despite the stock making a new high; a bearish divergence. It would suggest that the stock has topped out and could retrace to around $375.

netflix, nflx

Amazon (AMZN)

Amazon will not report results until April 30, but it, too, has formed a bearish divergence, with the RSI also failing to make a new high. The stock could pullback this week towards $2,135.

Amzn, amazon

AMD (AMD)

AMD has an RSI that is also in a clear downtrend as well, and it, too, is forming a bearish divergence - suggesting the recent AMD is not likely to last, and results in the shares pulling back towards $50.90.

amd

Shopify (SHOP)

SHOP surged last week too, but like the others, it also has a bearish divergence, with the RSI failing to make a new high and now trending lower. It would indicate that momentum in Shop is shifting from bullish to bearish, and the shares start trending lower in the weeks ahead. Perhaps back to the trend line around $440.

shop

Apple (AAPL)

Apple’s RSI has also stalled out in recent days, and there is a gap for the stock to fill, around $272.

apple, aapl

JD.com (JD)

JD.com has also hit overbought levels, and like the others, the RSI is now trending lower, despite the stock hitting a new high. It would indicate that the stock may turn lower and head towards $42.85 in the week ahead.