Stocks Fail Where It Mattered Most For The Second Day In A Row

S&P 500 (SPY)

Stocks fell on September 29, with the S&P 500 and the QQQ ETF falling by approximately 50 bps. The S&P 500 failed to advance beyond the 50-day moving average again and held the downtrend.

The move lower in the S&P 500 this afternoon seemed to correspond with an accelerated sell-off in the corporate bond ETF LQD around 3 pm. Think wider spreads between corporates and treasury rates, risk aversion.

NASDAQ 100 (QQQ)

The Qs continue to struggle to advance beyond $277.

Micron (MU)

Micron reported better than expected fourth-quarter results, but first-quarter guidance appeared to very light of expectations. The company sees earnings of $0.47 at the mid-point of the range, and revenue of $5.2 billion, with margins of 27.5%. Estimates had been for earnings of $0.69, on revenue of $5.3 billion, and margins of 32.5%.

Now before the pandemic, my instinct suggests Micron would be trading pretty sharply lower on this guidance. Times are crazy, and the stock is flat. I highly doubt that the stock survives tomorrow being flat. I still happen to think you will see $45.50, maybe not tomorrow, but relatively soon.

Zoom (ZM)

Zoom shares are holding on to support at $465. That RSI seems to suggest that Zoom is likely heading to $425.

Amazon (AMZN)

Amazon doesn’t look super strong, with the stock failing around resistance in that $3,160 to $3,175 region. I still think this stock has further to fall. Maybe that comes after a break of $3,100.