Last week the scales of the S&P500 Ours continued to lean towards her. We went through the reports of the 5 big ones (I will refer to them right away) and the index crossed the 3960 up. It also crossed the average to 89 days above and this is a very positive figure. In the process, the index closed the two downward gaps of the panic days, gaps we talked about before.
But, look at the nearby resistance level. The 4170 area. A very strong resistance level that can affect our scales at least in the short term. Note also that although the RSI He still hasn’t reached 70, he was stalled at his current level last time.
So the title for the week in relation to S&P500: The Great Resistance Test. A move above the 4170 area will be another step in the buyers’ comeback that we have been following here for the past few weeks and will set the 4360 area as the next target. The breakout event of the resistance will be considered dramatic and you should have a list of interesting stocks to buy in this case. A move below 4070 will teach about a lull in gains and a potential decline towards 3900.
Although the resistance is significant, there seems to be Buyers have the power to hack it. We will see in Wednesday’s article what develops.
The results of the reports on the graph
Last week we looked at the 5 largest stocks before the reports. As you will see in the aggregate graph, 4 of them rose following the reports and only META which I actually thought was interesting because of the level of support, failed to rise.
Out of the 5, it seems that – AAPL can continue to rise, AMZN You will have to face resistance in the 138th area together with the S&P500, GOOG with resistance at 120, META You’ll have to show us what’s going on with the support in area 159 and MSFT You will give a positive sign if you manage to continue to rise above 280.
Because last week I defined the AAPL As a test of the market, and if we add to it the hacking of Microsoft and the move of Amazon, we can understand where the power of the buyers comes from, which I referred to in the analysis of the S&P500. If it seems that the S&P500 manages to break through the resistance with the two strikers AAPL and – MSFT We will understand that the momentum in the game remains with the buyers. In such a case, you can go as mentioned to the reality list of the beaten shares and try to make a turn there. 
Stocks on the chart
Following the technical analysis I did for AMD A reader asked me to analyze the IN. A reasonable request, so I will gladly answer. What stands out most in her chart is the large reversal pattern in the configuration M. From there the stock fell, breaking below the bottom of the M And from there it continued to fall to the Fibonacci level of 50% which is combined with horizontal support. From the support the stock started to rise towards the resistance at $66. If you like, another objection that joins the market test. Its breakout above would be a very positive sign. A downward turn from this level would signal a chance of a drop to the Fibonacci-based opportunity level in the $42 area. For the short term, you can try a purchase towards 66 with protection below $59.7. Risk chance ratio of 1 to 2. Not enough for my taste but with the momentum of the stock it can work and then if by chance it breaks the 66 dollar when you are inside you won. 
Another stock worth paying attention to is OF. A super classic company in the sense of brand, relevance and business conduct with a super interesting level of support. no need to add.
Stayed in Classic with two more shares. The first is LEVI, The brand of jeans. You will see on the graph strong support and a breakout of a rising trend line.
The second is Coca-Cola which as a consumer goods stock is high above them all. An example of how there are always interesting stocks and we are the ones who don’t always know how to choose them in time or over other stocks. The stock is simply on an upward trend and those looking for a stable foundation for their portfolio can consider it.
the reader That. Already last week he asked me to refer to the company ALGN, before publishing the reports. I answered him that I prefer after the reports. As you saw with the big five, it is very difficult to “bet” on the reaction to the report since it depends both on the data of the report itself and on what investors think about it in relation to expectations. There is a concept called efficient market. This is where no one has an advantage when a stock reacts to the release of new information. The test we did in relation to the 5 big ones was for the purpose of monitoring how they pass the reports and from there we continued today with routine technical monitoring.
ALGN can be added to the reality list. It dropped to a significant support level and shows signs of stabilization according to all parameters. There also seems to have been no dramatic selling pressure on the stock. A move above 286 will be a positive and strategic sign, when the stock is in the 280 area, you can wait for a break above 286 and then, if you are interested in the stock, purchase it.
Thanks for the questions and comments you send me. Happy to help as much as I can. I’ll meet here on Wednesday. splendor
The author of the article is Ziv Segal (segalziv@gmail.com) who deals in the field of financial markets, technical analysis, behavioral finance and mental training, who has diverse occupations in the field in academia and practice.
*The above should not be seen as a recommendation to carry out actions and/or investment advice and/or investment marketing and/or advice of any kind. The information presented is for information only and is not a substitute for advice that takes into account the data and the special needs of each person. Anyone who makes any use of the above information – does so at his own discretion and sole responsibility. The company and/or the authors own and/or may own some of the papers mentioned above.