Here Is Why The Stock Market Sell-Off On February 7 May Not Last

Thursday, February 7

Domestic

  • S&P 500 pointing to a lower opening of 17 points
  • 10-Year 2.67%
  • Dollar Index 96.63
  • Oil $53.61

International

  • Japan Nikkei -59 bps
  • China Shanghai – Closed
  • Hong Kong Hang Seng – Closed
  • South Korea Kospi -4 bps
  • German Dax -1.36%
  • UK FTSE -1 bps

Japan

Asian Markets have stalled out this week, with China closed. Japan has stalled out at 20,951.

nikkei

Korea

The KOSPI has also stalled out at resistance around 2,210. That also happens to be a downtrend. The RSI has also reached overbought levels.

kospi

It is tough to confirm the moves in South Korea and Japan without China open. But at least for now they have some tough levels of resistance. But again we will need to see how these develop over the coming days.

S&P 500 (SPY)

The S&P is pointing to a lower opening today with a decline of about 17 points. Support for the index comes around 2,716 and then 2,690. With yesterday’s close, the chart had appeared to be setting up for a breakout today, but that is not what the opening is pointing to at the moment. It is a bit of a disappointment to me, but the good news is that we should gap lower, and that is likely to result in a move higher to fill the gap at some point later today or the days to follow.  Overall I don’t think today puts into jeopardy the move to 2,800.

S&P 500,spx

Biotech (XBI)

Biotech appears to be stalling out around resistance at $85.25, and now we need to watch support at $82.25, a drop below that level could result in a decline back to $78.75.

biotech

Twitter (TWTR)

Twitter is falling in the pre-market after guiding to a weaker revenue outlook. Also, the company said it would discontinue giving Monthly Active Users, something the market is not going to like.  Support is going to be around $30.20.

Twitter, twtr

NXP Semi (NXPI)

NXPI is falling in the pre-market after it reported results. I thought the results were good, guidance was a bit light, but certainly no worse than other names in the group. The stock has come a long way, so perhaps a pullback is due. But still, I thought the results based on the PR was fine. The conference call is pointing to weakness in China as the biggest issue.

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Disclosure: Michael Kramer and the clients of Mott Capital own NXPI, AAPL, and NFLX

Disclaimer: This article is my opinion and expresses my views. Those views can change at a moment's ...

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