The stock market took a hit last week and then bounced Monday and Tuesday. I’m not really look for anything to happen with the averages for now. The reality is there is a big generational shift that is now happening in the trading world with new small traders taking over the trading world for the moment.
Stocks that seasoned investors would avoid are now becoming the most popular stocks for new traders in the market.
As a result the worst performing stock in the S&P 500 is now a top buy on Robinhood.
As you probably know the best performing stocks that have been helping the market go up are stocks like NVDA, NFLX, AMZN, and FB as they heavily weight the Nasdaq 100 and S&P 500. Take a look at this chart of FB.
Facebook shares appear to be consolidating near their highs with their 20-day Bollinger Bands coming together. I wouldn’t be shocked if we don’t see it breakout and run again into its July earnings date – even if the S&P 500 doesn’t rally much more between now and then.
Most stocks do not look as strong as Facebook does at all and the NYSE composite still remains below its 150 and 200-day moving averages.
All the averages now look set to drift between their recent highs and their 50-day moving averages for the next few weeks.
-Mike
