Stocks Will Try To Rebound On October 7 On Renewed Stimulus Hopes

Stocks are rebounding some this morning with the S&P 500 ETF up 70 bps, and the Qs up 50 bps, after President Trump said he would sign standalone bills for stimulus. This all seems like a game so that each side can blame each other. I sincerely doubt anything gets done before the election.

S&P 500 (SPY)

When we can see when looking a bit closer at the charts that the S&P 500 futures are struggling around the uptrend, we fell below it late in yesterday’s trading session. Perhaps a quick recovery can invalidate yesterday’s late move lower.

I am still very much of the mindset that prices have further to fall from here, but we can see how today goes; the one thing you do not want to see as a bull is the index’s inability to hold that uptrend.

Amazon (AMZN)

Amazon got a big price target boost from Benchmark to $3,800 from $3,675. The stock has been stuck in this $3,100 to $3,200 since the middle of September. I still think this one that is going lower, back towards $2,800.

Netflix (NFLX)

Netflix had its price target raised to $650 at Pivotal Research fro $600. That is a new street high price target too. There is a downtrend that has formed in Netflix, with a potential descending triangle. The big test won’t happen until the stock gets back to $525.

JPMorgan (JPM)

JPMorgan has caught a bid in recent days as yields have increased, but to this point, it has been unable to retake the uptrend it broke below in mid-September. The stock likely struggles until it can break above what appears to be tough resistance around $105.