Stocks are falling on April 20 as WTI Oil prices drop by 25% to under $14 on the front-month contracts. The next significant level of support for oil comes around $10.50, a price not seen in decades. The oil market is telling us that not all is well in the economy and that demand is weak. I talked about this disconnect in the week ahead commentary for subscribers yesterday. Simple, put, the signals from the commodity, bond and forex market are not reflecting the same bullish optimism of the equity market.
S&P 500 SPY
The S&P 500 ETF (NYSE:SPY) is merely only giving back part of what it gained on that big closing cross, end of the day buy program into options expiration on Friday. The first level of support comes at $273.60, and then $263.40.
Bank of America
Bank of America Corp (NYSE:BAC) is falling some today, and I still happen to think that the stock is going to refill that gap around $20.
Tesla
Tesla (NASDAQ:TSLA) had a big run last week. But shares are falling a bit today, and they could drop to support and the uptrend around $680.
Disney
Disney (NYSE:DIS) was downgraded today to neutral from buy at UBS. Additionally, the stock price target was cut to $114 from $162. The stock has failed multiple times at resistance around $109, and I think the stock is going to head back to the lows around $78.60.
Nike
Nike (NYSE:NKE) has a rising wedge pattern in the chart, and that could result in a gap fill around $78.
Nvidia
NVIDIA (NASDAQ:NVDA) is falling today, and I still happen to think this one is heading lower. The stock is sitting on support and an uptrend near $284. A break of that trend could get the shares moving back to $218. Call me crazy.
