7 Important Predictions for the New Week in the Stock Market

US stocks struggled on Friday after Thursday's failed rally attempt. The S&P 500 fell by more than 2% on Friday, closing the week down by more than 1.5%. The bearish rising cup-and-handle pattern I pointed out on Thursday continued on Friday, causing the index to close at 3,583, back to Wednesday's level. Usually, a rising cup and handle pattern returns to the low of the cup, which is around 3,500. In addition, Friday's decline is a rejection of Thursday's rally and typically Friday's sell-off continues on Monday. The NYSE Advance-Decline made a new low on Friday, perhaps leading to a new low in the S&P 500. This suggests that Thursday's lows were not a capitulation event and market lows are probably yet to be seen.

10-Year Bond Rate

Also, interest rates continue to rise and it is hard for me to think that we can continue to see interest rates rise and share prices bottom. So as long as bond yields continue to make new highs, stocks should continue to make new lows. The US 10-year bond yield made a new closing high on Friday, ending the day at 4.02%. A repeat of the October 4 lows could take the 10-year yield to around 4.4%.

ARKK

So much for the rally for the ARK Innovation ETF (NYSE:ARKK). As RSI suggested the other day, the ETF continues its descent. At this point, one can only hope that it finds support at the lower boundary of the trading channel, around $31.50.

Tesla

Tesla (NASDAQ:TSLA) is set to release quarterly results this week and the chart looks terrible as it is trading just below the $205 support. If this support level is broken, there is nothing until $180 and of course there is still a gap to fill at $137.

Amazon

Amazon.com (NASDAQ:AMZN) may retest the lows around $102 as it gives back all the gains it made this summer. I think we will see that $102 is not the bottom.

Netflix

Netflix (NASDAQ:NFLX) appears to be in a scatter pattern, suggesting that the shares could return to the $170 level where the rally started.

Twilio

Twilio (NYSE:TWLO) also continues to melt down and with support currently at $63, a drop to $44 becomes a possibility.

Roku

We can end with one of my favorites. Roku (NASDAQ:ROKU) is in a slump and trading at levels not seen since 2019. With a gap to fill at $34, I think there's still a good chance it will get there. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!