Economic news will be less prominent this week, but we will see a big options expiration on Friday. The most significant open interest level on the board is at 3,000, and one has to think that level may act as a magnet for the market, pulling the S&P 500 higher this week towards that strike price.
SPX Open Interest By Strike
S&P 500 (SPY)
There is a path for the index to reach 3,000 this week with a gap to fill at that level. But first, the index needs to get over resistance at 2,960, which does seem possible given that the relative strength index is still 58.
S&P 500 Index Daily Chart
AMAZON (AMZN)
If the index is going to make that run higher, it is going to need Amazon (NASDAQ:AMZN) to be one of those stocks to help push it there. The stock has been holding an uptrend for the past two weeks, with a healthy level of resistance around 2,440. There is a bearish divergence forming with the RSI, which suggests the stock is likely to drift lower longer-term. However, the stock may just have enough juice left to keep it moving higher for one more week.
Amazon Inc Daily Chart
APPLE (AAPL)
Apple (NASDAQ:AAPL) may still have a little upside left too, but it is running short on room. The big questions will be what happens to the stock after it fills the gap at $311. Meanwhile, the stocks RSI is approaching 70, and overbought levels.
Apple Inc Daily Chart
UBER (UBER)
Uber (NYSE:UBER) is facing a severe level of resistance at $33, and after last week’s horrible results, I find it hard to believe that this one can continue to rise. I’m guessing it to comes back to $30.50.
Uber Tech Inc Chart
FACEBOOK (FB)
Facebook (NASDAQ:FB) has filled a gap too, and now its RSI is overbought with a reading of over 70. Not a good sign, as it means that stock is likely running out of steam, and reverse lower back to $191.
Facebook Inc Daily Chart
JD.COM (JD)
JD.com (NASDAQ:JD) is facing a bearish divergence on the RSI, and that means the stock may be topping out and on a path back to $42.80.
JD.com (JD) Daily Chart
ELI LILY (LLY)
Eli Lilly (NYSE:LLY) may be forming a head and shoulders pattern, and the stock needs to fall below $152 to confirm the potentially significant reversal lower. The RSI is already telling you the stock is losing momentum.
Eli Lilly Co. Daily Chart
AMGEN (AMGN)
Amgen (NASDAQ:AMGN) is also facing the same pattern as Lilly, with a drop below $224, confirming the reversal pattern.
Amgen Inc Daily Chart
