Small caps under the radar

$SPY pre-market chart

The overall market made a new all time high yesterday at 441.02, continuing the uptrend since reaching its 50EMA. Earnings season are in full swing. Today is a vital day with $AAPL, $GOOGL, $MSFT and $AMD reporting. Pivot support at 439.26. 8EMA around 436. Yesterday, the reopening sectors had a bid with cruise lines and airlines acting better. See if tech delivers strong earnings to keep momentum going.

$QQQ pre-market chart

The tech sector had an inside day in anticipation of the big earnings reports tonight. See how the market reacts to the big tech leaders for clues of future action. So far, earnings have been impressive but the market’s reaction has been divided with stocks such as $SNAP being rewarded, while $TWTR drifting lower despite impressive results. Holding above 364 is constructive for the coming days.

$IWM pre-market chart

The small caps are an important barometer of investors’ risk appetite. Despite the overall market making new highs in the past sessions, the $IWM has been struggling in a downtrend channel. See if this sector can contribute in the future sessions. The bigger the discrepancy between the sectors, the higher the probability the impressive run in the main indices might end.

$TSLA pre-market chart

Impressive earnings report by the EV leader last night. The income was 10 times higher compared to the same quarter last night. It reported that it is on track to start manufacturing cars from its 2 new factories in Berlin and Austin later this year. In after-market action it had a bid to 670. See if it shows any strength today. Next resistance points are 687, 684 and 693. For support use 650.


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