Stocks Continue To Struggle At Key Levels Of Technical Resistance

Stocks Continue To Struggle At Key Levels of Technical Resistance

Are you surprised that Brexit didn’t get the votes it needed? What a mess. I have no idea what ultimately happens, but at this point isn’t it worth holding a second referendum? Then again, who am I talk about UK politics?

I can tell you that the US stock market seemed unphased by the news.

S&P 500 (SPY)

Stocks continue to churn, going nowhere fast. We have now recouped all of the losses on the S&P 500 from the end of last week. The index finds itself in the familiar place of being stuck right around 2,800. The chart below shows again how the S&P continues to struggle.

Overall, it will take some news or event to trigger a sharp rise or a pullback in the market. Every dip to this point has been met with aggressive buying, while every attempt to get meaningfully over 2,800 has failed since the middle of February.

(Click on image to enlarge)

S&P 500, spy

Russell (IWM)

The Russell is slowly rising, with support at 1,540 and resistance at 1,562. It is hard to deny that overall trend does look lower. Just sayin’.

(Click on image to enlarge)

russell 2000

Technology (XLK)

Technology names look pretty strong with the XLK nearing a potential break out should it rise above $73. The chart looks way better than the S&P 500 and Russell that’s for sure.

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technology, xlk

Chipotle (CMG)

Chipotle had a sharp 2.25% rise today and may have finally signaled that break many had been looking for. The stock may be on its way to around $670.

(Click on image to enlarge)

chipotle

Alphabet (GOOGL)

Alphabet is breaking out, and the stock is coming to life with the next region of resistance around $1,225.

(Click on image to enlarge)

alphabet, googl

JD

JD shares are rebounding after pulling back last week to around $26. It wasn’t an unexpected move lower given the stocks rapid rise. The shares would seem to be back on its way back to $29.50

(Click on image to enlarge)

jd

Boeing (BA)

Boeing continues to struggle as more countries ground the 737 MAX 8. For now, $371 continues to hold firm. The question is for how much longer? A break below the $370 level does send the stock sharply lower, to around $330.

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Disclosure: Michael Kramer and the Clients of Mott Capital own Alphabet

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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