In retrospect, Monday’s modest gain may have only been a setup for an even more dramatic tumble on Tuesday. Stoked by fears surrounding a potential impeachment effort, poor PMI numbers for September and calendar-driven profit-taking, the S&P 500’s 1.23% selloff dragged it below some important technical support. The market’s true direction here remains a mystery.
Shares of Charles Schwab (NYSE:SCHW) and TD Ameritrade Holding (NASDAQ:AMTD) led the charge, falling 10% and 26%, respectively, after Schwab announced it would roll-out . It’s widely expected its rivals will follow suit. E*trade Financial (NASDAQ:ETFC) took a big hit too, sliding more than 16% lower.
There were a handful of winners, such as Stitch Fix (NASDAQ:SFIX). Shares of the online-stylist advanced a little more than 4% after the company’s fiscal came in better than expected. There just weren’t enough names like SFIX to keep stocks out of the red. The NYSE’s decliners outpaced advancers by three-to-one.
Headed into Wednesday’s session, it’s the stock charts of Twitter (NYSE:TWTR), Synchrony Financial (NYSE:
SYF) and Valero Energy (NYSE:VLO) that merit the closest examination as trading prospects. Here’s why.
Synchrony Financial (SYF)
To point out Synchrony Financial took a sizeable loss on Tuesday doesn’t mean a whole lot; most stocks took big hits. The overall market tide spread its carnage around pretty indiscriminately.
But, SYF stock is still worth a closer inspection simply because of the nature and placement of yesterday’s 2.8% setback. It’s the most indicative of bearish possibilities for a handful of different reasons.
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Valero Energy (VLO)
A cursory look at Valero Energy shares is a little bit daunting. Although it couldn’t be stopped in 2018 and early 2018, it was pounded into submission late last year. This year’s choppiness hasn’t re-inspired confidence, and investors are especially nervous about energy names right now anyway.
A longer, more thorough look at both stock charts suggests there’s something to this year’s choppiness besides uncertainty though. The volatility is extremely well organized, suggesting there’s a crowd of would-be buyers waiting in the wings to see the official trigger. Other bullish clues have surfaced in the meantime.
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Twitter (TWTR)
Credit has to be given where its due. Before 2017, it wasn’t clear Twitter was going to be able to remain a viable entity on its own. CEO Jack Dorsey found the right chemistry starting in 2017 though, and turned the company — and TWTR stock — around. It wasn’t a straight-line recovery, but it was a recovery nonetheless.
This year’s bullishness has been part of said recovery. It has also been unusually choppy, but that back-and-forth has been polite enough to flesh out some rising support and resistance lines. It’s worth a look at Twitter today simply because the lower edge of the range is about to be tested again, along with another important support line.
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As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website , or , at @jbrumley.
