International Business Machines (IBM) Stock Forecasts

Summary

The S&P 500 (SPX) hit an intraday low of 5,505 on Thursday, right at the key 61.8% retracement of the rally from last August until the recent all-time closing high in February. The index rose 2.1% on Friday, with the Nasdaq popping 2.6% and the Nasdaq 100 (QQQ) 2.5%. On the upside for the SPX, a 38.2% retracement of the decline is at 5,750; a 50% take-back comes in at 5,825; and the key 61.8% retracement lies at 5,900. Initial chart resistance comes in at 5,930, while the slowly declining 50-day average is at 5,940. A short-term SPX buy signal was tripped on Wednesday. The VIX closed outside its upper daily Bollinger Band on Monday, fell inside the upper band on Tuesday, and closed lower Wednesday. This three-day sequence gave us a VIX sell signal and the S&P 500 buy signal. We also have seen numerous bullish breadth divergences, but long-term breadth remains a concern. The SPX completed a double top on the weekly chart, which is not common, and a measured move based on the size of the pattern initially targets 5,500 and then 5,400. The index is below the 13-, 26-, and 40-week moving averages for the first time since October 2023 — which can lead to much deeper do