Technology Stocks Lead The Market Higher On May 24, But It May Not Last

Apple logo in front of a building

Stocks finished the day, mostly higher driven by the top five or six stocks in the S&P 500. The problem here is that these stocks haven’t done anything for a while and are at their own important resistance levels. So either Amazon, Apple, Nvidia, Microsoft, et al., will need to break out of their resistance zones, or new leadership will need to emerge tomorrow, which is certainly possible.


The QQQ is trying to fill its own gaps, which is currently around $334. We got pretty close today, perhaps close enough to consider the gap filled. I don’t see any more gaps that need to be filled on the upside, but there are plenty of gaps that need to be filled at lower prices. It would not be surprising to see the Qs drop back to $322 over the next few days, no. That is why I do generally not believe in today’s rally.


The gap on the XLK did close completely today and sold off promptly thereafter.


Amazon (AMZN) is the best example of this as the stock has struggled the past few days at the $3,250 price.


Apple (AAPL) also struggled at resistance today around $128.


Tesla (TSLA) managed to fill a gap around $616, and then it turned around after hitting that resistance level.


Nvidia (NVDA) rose all the way back to the upper end of its trading range and hit resistance as well.


Even the ARKK ETF today hit resistance at $109 and failed to push through.

This seems to indicate that there just weren’t enough buyers in the market to get through the wall of sellers waiting at various resistance levels in the market. Low volume on the SPY, Q, and the S&P 500 e-minis all seem to suggest that the sellers decided to take the day off. The question is if they decide to show up tomorrow.

Disclosure: Michael Kramer and clients of Mott Capital own AAPL, MSFT and TSLA.

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