It will be a busy week despite it being the last week of August. The week will be highlighted by Jay Powell speaking on Thursday at what used to be the Jackson Hole conference and is now virtual. I can’t imagine he will say anything that we haven’t heard in recent weeks.
On August 23, the President will hold a news conference regarding a major therapeutic breakthrough. I’m not sure there is anything new, as there has been no big talk of anything in the market. I’m betting it is something about hydroxychloroquine. There has been some work done recently on amodiaquine. Anyway, who knows, the IG Weekend Wallstreet is not showing much excitement trading up 0.09%.
The S&P 500 e-mini futures have been tracking this rising wedge very well. It brings the market to a critical inflection point because a break out could see the market rise sharply higher, like towards 3,600. Meanwhile, a breakdown could send the index lower 2,830.
The RSI has already topped out and is trending lower, while the advance-decline on the market is sinking. Typically, this would be viewed as a bearish reversal pattern. The rising wedge pattern generally is a bearish reversal pattern too.
Apple
Apple (AAPL) has been one of the most significant contributors to this market's run. We can see how overbought the stock has become with an RSI of 80. So what do you think? Can it keep going higher? I have owned it since July 2018, and still do, but that is a long-term like 5-10 year viewpoint I have.
Nvidia
Nvidia (NVDA) has an RSI of 76, and it keeps going higher too. What do you think? Kind of an exciting spot, right?
Amazon
Amazon (AMZN) continues to look impressive. Falling volume, falling RSI, stock hugging the uptrend. What do you think? Uptrend breaks and drops to 2,800 or keep rising to infinity and beyond?
Micron
Micron (MU) has fallen sharply, does it break support at $42 or reverse higher and head back to $50? The stock is getting oversold here, but that doesn’t always mean a reversal of trend right away.
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