The stock market has been on a strong bullish trend, particularly since the crash in March last year, due to the coronavirus breakout. But, the coronavirus turned into a positive thing for stock markets, after governments and central banks turned massively dovish and threw all the cash they could borrow at the market, which has been keeping the global economy in a fast sate of expansion during this period, while stock markets have made some massive gains.

Google Daily Chart Analysis – The Uptrend Resumes Again

Stock indexes have more than doubled since March 2020, with S&P500 increasing from around $2,200 to $4,800. Google shares have increased from around 1,000 points in March last year, to above 3,000. Moving averages have been doing a great job as support, holding the price during pullbacks, which have been shallow. In the last few months, the 100 SMA (green), in particular, has been doing a great job as support on the daily chart.

Earlier this month we witnessed the latest pullback in stock markets, and Google shares retreated to 2,800 points. But it seems like the reversal is over now, since the price has climbed above all moving averages again in the last two days. We missed the chance to buy down at 2,800, but this is still a good opportunity to buy Google shares.

Alibaba Daily Chart Analysis – The 20 SMA Keeping BABA Down

BABA stocks can’t stop declining 

Alibaba is unfortunate to be based in China. The Chinese Government is going after the private sector now, after letting it flourish for decades. Alibaba Group has been one of the hardest hit by the crackdown on everything related to cryptocurrencies. Alibaba seems to be in the focus of the government, for its Alipay service.

The crackdown has been keeping Alibaba stocks bearish since last November, after the presidential elections in the US. The pace of the decline has increased, and now the 20 SMA (gray) on the daily chart has turned into resistance. We decided to open a sell signal right there last week, so we are in profit now, after the bearish opening today.