Despite politicians insisting that inflation is merely transitory, there are many good reasons to believe that it isn’t. One reason: the increase in the price of oil.
Sometimes stocks in the same parts or sectors of the market have similar chart patterns. They have similar trends and reach resistance or support levels around the same time.
There’s a chance the selloff in Netflix, Inc. (NASDAQ: NFLX) is about to end.
In financial markets, levels that have been resistance can turn into support and it could happen here. Levels around $510 were resistance at the end of April.
When markets are trending lower, the bears are in charge. There isn’t enough demand to absorb all of the supply, which forces the price lower.
The opposite is true in an uptrend. There isn’t enough supply to satisfy all of the demand and this forces the price higher. The bulls are in charge.
After large moves lower on Friday and Monday, the SPDR S&P 500 ETF Trust (NYSE: SPY) traded up almost 1.5% Tuesday. But the market may still be in trouble.