Time To Let The Chips Fall Where They May: Will Stocks Rise Or Drop?

It Is Time To Let The Chips Fall Where They May: Will Stocks Rise or Drop?

S&P 500 (SPY)

The stock market posted a solid day with the S&P 500 rising about 20 basis point. We continue to inch closer to the all-important level of resistance at 2,630. We did make it to about 2,625 and then saw a minor pullback. I talked about it a bit more in a video today on the Marketplace service. Can Banks Lead Stocks Higher

SP500, SPY

Russell 2000 (RUT)

For now, the Russell is stalling out around 1,454.

russell 2000

Housing (HGX)

The NAHB/Wells Fargo US Housing Market Index ticked up to 58 in January from 56 in December. It is beginning to look as if the PHLX housing index (HGX) is creating a bullish flag, which could take the index above 269. The RSI suggests that momentum is on the side of the index rising. It would be positive for the overall stock market.

housing

Consumer (XLY)

There are signs that there is a similar pattern forming in the discretionary ETF XLY.

consumers xly

NASDAQ (QQQ)

We can see that NASDAQ is also getting close to something happening.

nasdaq

At the risk of sounding wishy-washy, one could argue that stocks are about to go on a significant run higher or about to drop.

One has to wonder where the leadership will come from? For the most part, technology has been pretty dead, except for yesterday’s Netflix induced rally. The banks have had a massive rally already, and one has to wonder how much they have left?

Banks

The Bank Index (BKX) broke above resistance today at 94, and that sets up a test at the 97 level.

banks

Bank of America (BAC)

Bank of America had a big move higher today over $28, and that puts $29.50 into play. But that RSI is getting high and that would at least a suggest a pullback is on the table at some point in the not to distance future, perhaps to falling to around $26.75.

bank of america

JP Morgan (JPM)

JP Morgan managed to get close to breaking out but failed. The RSI is in a horrible downtrend, and at the moment, I don’t see this stock rising.

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Disclosure: 

Michael Kramer and the clients of Mott Capital own Apple

Disclaimer: This article is my opinion and expresses my views. Those views can change at a moments notice ...

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