Are The Stars Aligning For A Stock Market Breakout On June 18?

Stocks bounced around on June 17 with the small caps and Biotech leading the charge higher. The communication sector had a solid showing Monday, too. The broader S&P 500 was up, barely, and plenty of opportunities but the buying just wasn’t strong enough to break the resistance level at 2,895. With the Fed meeting this week, we may have to wait until Wednesday to find out what happens next.

S&P 500 (SPX)

The S&P 500 tested resistance at 2,895 on June 17 two times and failed each time. I have been fiddling with trying to find an uptrend today for the S&P. For the moment, I have three points that connect. If the uptrend turns out to be correct, it would indicate that we break above resistance at 2,895 on June 18 by no later than 2 PM. How do you like that precision? As if the Zodiac is telling me the time and the date for the breakout? Oh, I love the foreshadowing, genius.

S&P 500, spx, june 17

Russell 2000 (RUT)

The Russell already had an uptrend and an ascending triangle pattern in place, and today’s action continues what we have already seen. The Russell briefly rose above resistance at 1,536, but it could not hold. The Russell’s do or die moment will also come by June 18, but 11:15 or earlier.

russell, june 17

Biotech (XBI)

The biotech group surged on June 17, following the news Pfizer would buy Array. It was as if Ares, ruled by Mars, the god of War had left the group for dead. The XBI managed to clear resistance at $85.25 and could be on its way to around $88.I went through a pretty in-depth review today, in a premium video. (See: Biotech Jumps Back To Life)

biotech, xbi

Netflix (NFLX)

Netflix had a good day following positive comments out of Piper Jaffray. The significant level to watch at this point for NFLX is at the downtrend, which is currently around $360.

netflix, nflx, june 17

AMD (AMD)

AMD did not have a good day, slipping below support at $29.40 and now risks a decline to $28.50.A week late, but better than never. 

amd, june 17

 

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Disclosure: Michael Kramer owns XBI calls. Michael Kramer and the clients of Mott Capital own NFLX and TSLA.

Disclaimer: This article is my opinion and expresses my views. Those views can ...

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