Stocks Stall On February 11, But A Break Out May Be On The Horizon

Stocks Stall on February 11, But A Break Out May Be On The Horizon

Stocks had a rather quiet day with the S&P 500 flat. The good news is that stock held their gains for the late-day rally on Friday. The bad news, the index is struggling to rise above 2,716.

The index moved and failed right at resistance at the start of the day. It is consolidating nicely at these prices, and it seems to be forming a bullish flag, a continuation pattern. It would suggest to me we do rise above resistance at 2,716, and test 2,730, while also filling that gap from last week — more on gaps to come.

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S&P 500, spx

Russell 2000 (IWM)

We can see that a similar setup in the Russell 2000 came and went, with the Russell breaking out and on its way back to 1,524

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russell 2000

So it seems to me that the S&P 500 is going to be more than fine going forward. I think lasts week sell-off on Thursday was nothing but noise. It looks like I have been proven correct until I get proven wrong tomorrow. Joke –Laugh.  

Tesla (TSLA)

Anyway, moving on to Tesla. The stock is having a tough time getting over the $318. It appears that there may be a downtrend in place, which surprising to me. The RSI continues to point to higher prices, so I am sticking with a bullish outlook on the stock and rise back towards $333.

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tesla, tsla

Amazon (AMZN)

Don’t get too excited if you have Amazon; I have some bad news for you. The stock is struggling at this $1620-ish level. The RSI has a clear trend, and it isn’t higher –that’s for sure.

But here’s the thing, the RSI is more of a long-term trend lower. What I am seeing now is that the stock has the potential to rise with that falling wedge. It suggests Amazon could break out and first rise to around $1680 before moving lower again.

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amazon, amzn

Nvidia (NVDA)

Nvidia reports on Friday, and as I noted this morning, the setup looks pretty bad. Here is a free story I wrote on the stock today. Nvidia’s Bulls May Be Too Optimistic

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Disclosure: Michael Kramer and the clients of Mott Capital own Tesla

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

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