Stocks in the US are pulling back some today, especially in the . The are down about 80 basis points, which is nothing considering how much they are up just this week. But given the size of the move in recent weeks and its location on the charts, it wouldn’t be surprising to see this turn into something more, with the first level of support around $291, then $284, and $278. A 9% drop from where we closed on Wednesday is possible, and still, keep the ETF in the uptrend.
If there is one thing to consider is that the (NYSE:) has formed a bump and run pattern, and that is usually a bearish reversal pattern, and with an RSI of almost 84, a pullback to $118 seems quickly done.
The may continue to catch a bid, especially if the ECB is intent on focusing on the . That is terrible news for risk-assets and gold. The significant level to watch is 93.50.
Watch for a break of support at $1925 on , sending it to $1865. Support as been strong, but the longer it test support, the more likely it is to break it.
Tesla (NASDAQ:) shares are trading lower today by about 6% to $420. The stock has started to come under pressure since announcing it intents to sell up to $5 billion in stock. It is a smart move, why not especially given how much the stock has run-up. The stock did break critical support yesterday at $442, and $390 is next. I did end up reducing my holdings again in the stock, back to 10%.
Apple (NASDAQ:) is also trading down some today, but support looks pretty firm around $124. A break of $124 sends the stock lower to around $115.
Adobe (NASDAQ:) has been another big winner in this technology rally and should find some strong support around $510 if a pullback develops.
Keep an eye on Shopify (NYSE:) for a potential head and shoulders pattern, with a break below $910 presenting long-term issues.