Stocks Are Ready To Rally On April 6 But Don’t Trust It

I’m not sure what has changed since Friday that the markets are jumping here. The virus is still spreading, and the economic impact is likely to be severe. I now personally know five people that are confirmed positive for the virus.

S&P 500 (SPY)

Stocks are pointing to a higher opening on April 6, with the S&P 500 ETF rising by roughly 3.75%. But this only gets us back some of the losses we saw last week and the significant levels of resistance that continue to live around the $263 level. So currently trading around $257.65 doesn’t excite me. I still think this market is in a prove me wrong state, and that means rallies are not to be trusted. I’d be careful here, and watch for a gap fill back to around $250. 

S&P 500, spy

Germany (EWG)

The German DAX is also still trading below an essential level of resistance too, and again, these are significant levels. The sellers seem to be letting markets rise just so much. 

DAX

Russell 2000 (IWM)

The Russell 2000 ETF IWM is also failing around $110, with the risk for a gap fill back to $105. 

Zoom (ZM)

Zoom is getting crushed as more privacy concerns arise over the weekend, and I’m sticking with my thoughts; it heads back to $105. I have been using many of these conference apps over the past few weeks, and I don’t see what’s so special about it, but what do I know. 

Zoom, zm

Square (SQ)

Square is jumping this morning but is failing at resistance around $47. 

square, sq

Nvidia (NVDA)

Nvidia is trading up to $256 last week’s highs, again failing at resistance so far. Be careful here. 

nvidia, nvda

Cisco (CSCO)

Cisco is doing the same thing. 

cisco, csco

Mastercard (MA)

Mastercard is trading higher too, but hitting some resistance at a downtrend, with another level of resistance around $252.  Again, watch for downside risk and gap fill. 

mastercard, ma

Have a great Monday!

Disclosure: Michael Kramer And The Clients Of Mott Capital Own MA 

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

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