S&P 500 (SPY)
This week kicks off earnings season, and that means the volatility may once again pick up in the stock market. The S&P 500 appears to have a bearish reversal pattern known as a rising wedge, and it suggests that the index may be due to drop this week. It could result in the index filling the technical gap at 2,450.
S&P 500 Index Daily Chart
20-DAY MOVING AVERAGE
Another negative indicator is that number of stock in the S&P 500 above their 20-day moving average is at 98.3%. That is the highest reading ever!
S&P 500 - 20 Day MA
RUSSELL 2000 (IWM)
There is also the same bearish pattern that has formed in the Russell 2000 (NYSE:IWM), the rising wedge. It indicates the index drops to around 1,160.
Russell 2000 Index
NVIDIA (NVDA)
NVIDIA (NASDAQ:NVDA) may move lower this week, I noted some bearish options betting in this past week, and the stock could have a considerable drop ahead with support at $218.
Nvidia Chart
AMAZON (AMZN)
Amazon (NASDAQ:AMZN) also has that same rising wedge pattern, and it too could be suggesting that Amazon is due to correct back towards $1825.
Amazon Chart
FACEBOOK (FB)
Facebook (NASDAQ:FB) also has that similar pattern, and it could even be a bear flag, setting up a decline to around $140.
Facebook Inc Chart
BANK OF AMERICA (BAC)
Bank of America (NYSE:BAC) reports results this week, and it has successfully filled the gap up to $25.20, and with a break of the uptrend, the stock could fall back to $19.60.
Bank of America Chart
ALIBABA (BABA)
Alibaba (NYSE:BABA) also has a rising wedge in the chart and suggests a gap fill down to $188.
Alibaba Chart
TESLA (TSLA)
If Tesla (NASDAQ:TSLA) can get back above $595, it has room to climb to around $640.
Tesla Inc Chart
