Market Overview

Master Levels: Where Key Stocks Will Bounce/Pullback

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The markets have shot higher over the last few days. From Friday's lows, the SPDR S&P 500 ETF Trust (NYSE: SPY) has jumped a full $5.00. The markets have made new all time highs and a short squeeze appears to be on. However, many name brand stocks have not made new 52 week highs and are lagging the S&P 500. This may be a negative divergence and could warn of a coming pullback.

Goldman Sachs Group, Inc. (NYSE: GS) is a great example of a stock that is not even close to making new 52 week highs as the S&P 500 makes new all time highs. The stock has bounced hard off the recent lows but is running into major resistance at the $150.00 level. There should be a pullback at/around this level. The current price on Goldman is $149.31, +2.79 (1.90%).

Google Inc (NASDAQ: GOOG) is moving sharply higher today. The stock is trading at $791.53, +13.88 (1.78%). While a great pop, the stock has two major moving averages coming up. The 50 and the 20 moving averages will converge at a price of $801.00 in the next few days. Should the price on Google move into that level, a pull back should be expected.

Lastly, I wanted to cover the volatility index, the VOLATILITY S&P 500 (INDEXCBOE:VIX) is trading lower today, but not as low as one would expect considering the sharp move higher in equity prices. This is often a leading indicator of a pull back. Based on this factor, by Friday, the markets should see a small dip back down.

Gareth Soloway

InTheMoneyStocks.com


The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Technicals Markets Trading Ideas

 

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