6 Monster Stock Market Predictions – The Week Of Jan. 25 Edition

The FOMC meeting will serve as the highlight for the week of Jan. 25. At this point, it is hard to imagine there is much for the Fed to do, especially with another round of stimulus on the way. So it seems unlikely that the major indexes should see much in the way of volatility around that meeting.

It will be a big week for earnings, and if anything is going to move things around, it is more likely going to be the earnings results.

S&P 500 (SPY)

The S&P 500 did manage to rally by around 2% last week, following the better-than-expected results from Netflix (NFLX), putting a bid into the entire technology and communication sectors and helping to drive the indexes higher. However, the S&P 500 did stall around 3,850, as that was one of the big options related to gamma levels that keep the index from pushing even higher.

Apple (AAPL)

It looks like Apple broke out this past week, coming out of a bull flag, and with an extension of that flag indicating the stock may move higher towards $150.

Boeing (BA)

Boeing also has a bull flag like Apple, which suggests that higher prices await this stock and that there is potential to climb to around $240.

Starbucks (SBUX)

Starbucks will also report results this week, and at the moment, it appears that the stock has formed a head and shoulders pattern. A drop below $101 would confirm this bearish technical pattern, and a drop to around $95 is on the horizon. The RSI is trending lower, suggesting bullish momentum is leaving and supporting the bearish outlook.

Procter and Gamble (PG)

Procter and Gamble had a terrible week despite reporting better-than-expected results. The stock has confirmed its bearish technical pattern -- the double-top pattern -- when it fell below support at $134. The next price to watch for is around $125.75.

Western Digital (WDC)

Western Digital also has a potentially bearish head and shoulders pattern in the chart. In this case, the stock would need to fall below support at $47.85 to confirm the bearish pattern, and see it fall further to around $40.80.

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Disclosure: MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL.

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