AMC Entertainment stock fell -9.64% on Tuesday.
The movie theatre stock had a very choppy decline as it trended lower alongside the market.
GameStop fell -8.49% with APE taking a smaller hit out of the three retail favorites at a loss of -6.46%.
Just days ago, the movie theatre chain was up more than +40% on the month.
Wasn’t the market just bouncing?
Let’s discuss it.
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S&P 500 Retests $392 Levels
The SPY created a triple bottom between mid-November and today when it retested levels around $392 per share.
This means shares came down to this level and bounced 3 times now in the past month.
While the SPY tends to drag the entire market down, seeing where this index goes is going to be key.
It bounced previous levels and closed today at $393.84 signifying strong support.
SPY hit a triple bottom around $360 earlier this year on the macro trendline and hasn’t begun to come down until now.
We saw SPY touch $360 first in June, again in September, and last in October.
What we’re seeing here is the SPY trend upwards as it retests major levels of support.
What to Look Out for In the Next Days
We’re going to want to keep an eye out for another retest or continuation in the next few days.
A retest could lead to another bounce from the level a fourth time or it may break through the $392 level if a massive selloff occurs.
The SPY will pull AMC Entertainment stock and the market in general in either direction.
As of June, we’ve seen the SPY begin to slowly recover, taking the markets up with it towards the end of the year.
Will this trend continue, or will it come down again?
I’m curious to know your thoughts.
Leave a comment down below.