SPDR SP-500 Trust (SPY)
SPY fell to a six-month low on Monday and worked its way into a Friday close near the weekly high. This price action has carved a high volume bull hammer reversal on top of the 50-week moving average near 431, indicating the selloff has probably run its course, at least for now. The next test may come between 455 and 460, where the fund broke down from 50-day moving average support about two weeks ago.
Advanced Micro Devices Inc. (AMD)
AMD posted a fabulous 56% return in 2021, with gains stretching to 79% when the stock topped out in November. It’s been all downhill for shareholders since that time, with the chipmaker breaking down from a head and shoulders pattern and shedding nearly 40% into Friday’s intraday low. The stock has now reached support at the September low and psychological 100 level, generating tailwinds that could yield 20% short-term upside.
Market players will be focused squarely on the impact of iPhone privacy changes when Meta Platforms Inc. (FB) reports Q4 2021 results after Wednesday’s closing bell. The mega-cap is expected to post a profit of $3.83 per-share on $33.44 billion in revenue, which would mark zero profit growth compared to the same quarter last year. The privacy update has made it harder for social media companies to target narrowly-defined demographics in their advertising.
ETH had a constructive week, selling off to a six-month low on Monday and bouncing into a weekly bull hammer reversal at the .786 Fibonacci retracement of the mid-year uptrend. Weekly Stochastics has crossed into a bull cycle at the oversold level at the same time, raising odds for a bounce that tests 50-week moving average resistance at 2,900. Just keep in mind that Biden is set to issue an executive order on crypto regulation that could upset the recovery effort.
AMZN reports Q4 2021 earnings after Thursday’s closing bell, with analysts looking for a profit of $3.64 per-share on $137.6 billion in revenue. If met, earnings-per-share (EPS) will mark a painful 74% profit decline compared to the same quarter last year. The stock has fallen 18% since the October report, breaking down from a topping pattern and dropping to a 19-month low. A buy-the-news reaction is possible after the downdraft but heavy resistance above 3,200 could end the upside.
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Disclosure: the author held no positions in the aforementioned securities at the time of publication.