Good morning and welcome to a new month on Wall Street. Asian markets are posting strong gains early this morning and the US indices are looking to open higher. We had an inside week so it will be important for the overall market to show some relative strength in order to keep momentum. For today, see which sectors can help the $SPY. With tech acting sideways last week, see if the EV sector or semiconductors can take the lead. For today, $438 is pivot support. For resistance see if we can get above the all time high at $441.80.
The tech sector absorbed last week’s earnings and guidance from the main companies. It managed to keep above its 21EMA. For better action in needs to reclaim its 8EMA around 364.67. For today, see if any of the tech stocks that showed some relative strength on Friday such as $AAPL can grind higher. It will be equally important for stocks such as $AMZN to manage to find a bottom and quickly start to fill its earnings gap. 365-367 will be the first resistance level. A close above that will bring lots of momentum to this sector again.
Apple has been on sale since its earnings report. It reported strong growth among all its sectors but the company refused to issue guidance. It showed some relative strength late on Friday and will be on our radar today to see if it can continue higher. A break above 146.33 opens the chart towards its all time high at 150. For support, it should not dip below 143.
Tesla has been a big winner for our portfolio since its Day 1 candle on Thursday. It continued higher on Friday despite overall weakness in the market. With news of its AI day scheduled for later in August and the infrastructure bill approaching its final stages, we are confident this stock can continue higher. For today it needs to hold above 680 to show commitment to the recent move. For resistance see if it can take out 697 and reach the next big resistance level at the top of the recent channel at 700.