Stocks Are Failing At Another Tough Level Of Resistance

S&P 500 (SPY)

Stocks are trading flattish following yesterday’s big move higher. Interestingly the S&P 500 futures traded up to around 3050 last night for some time and were unable to advance any further. It seems to be the pattern we have been following for a few weeks now. First, with 3150 was acting as resistance, then 3080, and now 3050. If that is the case, then we need to mindful or thoughtful of the fact that futures could quickly be heading to 3000.

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Here is the chart of the S&P 500 from the SPY ETF point of view.

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Qs (QQQ)

And for now, the chart of the Qs. Again, $240 is the only level that matters for now.

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HYG (HYG)

As pointed out yesterday, we need to watch the HYG vs. the SPY; you can see why in the chart below. Notice the recent separation, but more importantly, the tight correlation. They tend not to diverge for too long.

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Micron (MU)

Micron is jumping today following results, and a couple of sell-side shops raised their price targets. Regardless, the only thing that matters is that the stock can’t get over $52.75.If it can close above $52.75, that would be a big win for the stock.

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Uber (UBER)

Uber is in talks to buy the food delivery service Postmates for $2.6 billion. It seems like Uber is looking to go all-in on food delivery. I tend to think that ride-sharing could be a problem in this coronavirus led world. $30.50 is resistance for now.

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