Auto Implications:
Bring up the stock TSLA and one will be sure to have an opinion. “It’s not an auto play, it’s a technology stock”. “Elon Musk is too controversial”. “His recent foray into TWTR has created a lot of technical damage to the chart”. “He should stay focused on one company at a time”. Say what you want but it is very influential in the XLY as the second-largest holding behind just AMZN at nearly 20%. Both of the behemoths are 43% off their most recent respective 52-week highs and each is dealing with round number theory. Many believe AMZN will eventually make its way to the 2000 figure and on the chart below of TSLA 700 has become a familiar pit stop. Perhaps to soo. One could make the case for a bearish descending triangle, but its hesitancy to bounce off 700 here has me feeling it may want to go lower. The measured move from the bear flag is 450. Not sure one wants to program that destination into the autonomous vehicle autopilot.