Stock Market Warning! Friday’s Selloff Leaves Damage Behind
The stock market is attempting to recover this Monday morning, with US index futures trading above fair value as crude oil drops more than $4.50 in pre-market trading. However, Friday’s selling pressure has left significant technical damage. Semiconductor stocks remain under pressure, with many trading below their 200-day moving averages and forming lower highs. Nvidia remains an exception after recently reaching an all-time high, although it also closed below its 200-day moving average on Friday. Meanwhile, energy stocks continue to show strength, while gold stocks and mining shares have weakened considerably.
Investors should watch several important technical levels this week. The S&P 500 is testing its 100-day moving average, with 750 acting as important support. The NASDAQ 100 is holding 687.50, the bottom of a seven-month trading range extending to 750. Canadian markets have weakened, with both the TSX 60 and Vanguard Canada ETF returning to sell signals. The VIX has also spiked, indicating increased market volatility. Friday’s lows remain important, and investors should be cautious about chasing early Monday strength.
0:00 Monday Morning Market Outlook
0:24 Semiconductor Stocks and the 200-Day Moving Average
1:11 Intel, Marvell and Nvidia Technical Analysis
2:02 Energy Stocks vs. Gold and Mining Stocks
2:29 Bond Market Recovery and Interest Rates
3:00 NASDAQ 100 Market Breadth
3:18 S&P 500 Support and Market Breadth
4:12 Canadian Market Weakness: Energy vs. Materials
4:58 Friday’s Dow Winners and Losers
5:34 S&P 500 Tests 750 Support
5:49 NASDAQ 100 Holds 687.50 Support
6:22 NASDAQ Winners and Losers
6:50 TSX 60 Returns to a Sell Signal
7:32 Canadian Market ETF Returns to a Sell Signal
8:08 VIX Spikes as Market Volatility Increases
8:43 Monday Market Outlook and Key Levels to Watch
