Not A Strong Finish For Stocks On March 19

t was actually a rather boring day, with the S&P 500 range-bound for most of it. The S&P 500 fell by around 6 bps to close at 3,913. The pattern isn’t that strong overall and is actually very concerning looking. There is a potential for a double top pattern forming, with a decline below 3,725, confirming it. It is clearly still far away, but markets can move fast. Additionally, the RSI is starting to show serious signs of deterioration.

VIX (VIX)

The VIX managed to close over 21 today, so my 20 being the low end of the range and 3,950-3,960 being the upper end of the S&P 500 continues to remain in play. It wasn’t pleasant at times this week, but that’s just how it goes.

Apple (AAPL)

Apple finished the day lower and below $120. I’m concerned the stock has further to fall. It has been very weak, and its valuation is not favorable in this higher rate environment. There was a notable bearish bet placed in the stock that I picked up on today. I still think that $110 is possible, but the first stop is likely at $116.

Wells Fargo (WFC)

I noted today that I thought Wells Fargo could be heading lower from here for a period of time. The stock has had such a big run, it likely needs a pause, and $33.60 seems like a reasonable place to settle. 

Disclosure: Mott Capital Management, LLC is a registered investment adviser. Information ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Kurt Benson 4 weeks ago Member's comment

Agreed. I think $WFC will revisit 33-35 soon.