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GameStop store signage
Michael M. Santiago / Getty Images
GameStop
shares slipped after gaining 28% on Tuesday. And the revival of meme trading could be good news for the actions of small businesses in general.
Shares of GameStop fell 1.1% to $ 208.05 in premarket trading on Wednesday. It’s not a big play compared to Tuesday’s rise, but with meme stocks, you can never know.
Shares of GameStop had fallen nearly 50% since peaking in early June, but wiped out 40% of that fall in one day. It also looks like it has removed resistance at about $ 200, which means there would be more perks. Don’t be surprised if $ 200 becomes support.
GameStop wasn’t the only meme stock on the move on Tuesday.
AMC Entertainment
(AMC) gained 20% and, like GameStop, seemed to clean up the resistance, though not so cleanly. Shares of AMC are up 3.3% to $ 45.73.
For those wondering why we care about these actions, keep this in mind: AMC is the largest market position
ETF iShares Russell 2000
(IWM), although this means that it is only 0.5% of the index. If meme stocks continue to rise, this could be good news for small businesses, which haven’t gone anywhere since February.
“Good rebound … but there’s still a lot to prove,” writes Jonathan Krinsky of Bay Crest Partners. “Closing the IWM above $ 225 would send a strong bullish message to the capital letters and suggest that the now seven-month consolidation is in fact resolving.”
Stay tuned.
Write to Ben Levisohn at [email protected]