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Behind a big tech selloff, markets traded lower throughout with the Dow and S&P modestly down while the Nasdaq dropped nearly 2%. Antitrust suits against Facebook pushed shares lower while continued COVID infection rates throughout the U.S. and worldwide applied additional pressure. With little progress on the proposed stimulus bill, markets did not receive much relief though a bright spot came in the debut of DoorDash which saw shares skyrocket over 80%. The current $916 billion stimulus bill being discussed in Congress would offer $600 to Americans while additional portions of the plan are still being hashed out. The first non-trial COVID vaccine was administered in the U.K. this week and should provide some additional support if the new vaccines receive continued momentum. Until an additional breakout is sustained, our models are projecting the SPY to trade between the $340-$375 levels. Although the market traded lower today, we continue seeing strong rotation from growth to value stocks and believe the SPY is on its way to retest its recent highs. With the market prone to further corrections, the next level of support is set at $350. We encourage all market commentary readers to maintain clearly defined stop-levels for all positions. For reference, the SPY Seasonal Chart is shown below:
Key U.S. Economic Reports/Events This Week:
Upcoming Earnings:
For reference, the S&P 10-Day Forecast is shown below:
Using the “^GSPC” symbol to analyze the S&P 500 our 10-day prediction window shows a near-term mixed outlook. Prediction data is uploaded after the market closes at 6 p.m. CST. Today’s data is based on market signals from the previous trading session.
The stock is trading at $170.58 with a vector of +0.17% at the time of publication.
10-Day Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
Note: The Vector column calculates the change of the Forecasted Average Price for the next trading session relative to the average of actual prices for the last trading session. The column shows the expected average price movement “Up or Down”, in percent. Trend traders should trade along the predicted direction of the Vector. The higher the value of the Vector the higher its momentum.
*Please note: At the time of publication Vlad Karpel does have a position in the featured symbol, FFIV. Our featured symbol is part of your free subscription service. It is not included in any paid Tradespoon subscription service. Vlad Karpel only trades his money in paid subscription services. If you are a paid subscriber, please review your Premium Member Picks, ActiveTrader, or MonthlyTrader recommendations. If you are interested in receiving Vlad’s picks, please click here.
West Texas Intermediate for Crude Oil delivery (CL.1) is priced at $45.69 per barrel, up 0.20% at the time of publication.
Looking at USO, a crude oil tracker, our 10-day prediction model shows mixed signals. The fund is trading at $31.38 at the time of publication. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
Gold
The price for the Gold Continuous Contract (GC00) is down 1.71% at $1842.90 at the time of publication.
Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows mixed signals. The gold proxy is trading at $174.33, at the time of publication. Vector signals show -0.47% for today. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The yield on the 10-year Treasury note is down, at 0.930% at the time of publication.
The yield on the 30-year Treasury note is down, at 1.689% at the time of publication.
Using the iShares 20+ Year Treasury Bond ETF (TLT) as a proxy for bond prices in our Stock Forecast Tool, we see mixed signals in our 10-day prediction window. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The CBOE Volatility Index (^VIX) is $21.62 at the time of publication, and our 10-day prediction window shows mixed signals. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
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