$SPY pre-market chartThe overall market had a downtrend day as it reached its 8EMA around 436. Covid related news, the Chinese tech regulations which impacted the stock exchange and further talks about inflation have been the main drivers yesterday. Holding above the 8EMA keeps momentum in the overall market. We were extremely overbought coming into this week after the huge rally yesterday. As the earnings season has so far shown, most companies are topping estimates and offering constructive guidance. For today see if we rebuild in this area 436-439. Next big support area is 432.
$QQQ pre-market chart
Impressive earnings reports last night from $GOOGL and AAPL. $MSFT too had impressive guidance for the next quarter. After a big down day yesterday, see if the earnings will help the overall tech index reclaim the 365 area. Tonight $FB reports which will be important for sentiment. The last of the big tech companies reporting this week is $AMZN on Thursday. For today, building above 360 keeps momentum in the tech sector. See how $AAPL and $GOOGL are treated in the first half an hour to get an idea if all good reports are sold or not.
$AAPL pre-market chart
Apple was on sale yesterday together with the entire tech sector. It reported earnings after the close, which showed again impressive growth. All categories posted great year/year comparisons with the Iphone sales increasing by a whooping 50% on an annual basis. Revenue came in at 83 billions compared to 73 billions expected by analysts. Earnings per share were $1.33 versus estimates of $1.01. The initial reaction of the market was to reward $AAPL as the stock reached 149 in after market, but as soon as investors realized that no guidance has been offered it gave back all gains and closed the day around 143. For today, see if it gets any upgrades for this strong quarter and we expect it to hold its 21EMA around 143.
$GOOGL pre-market – The jewel of the earnings season
Google reported impressive earnings after the closing bell. The ad giant posted a huge EPS beat. The cloud services revenue was impressive, while the icing on the cake was the ad revenue which posted an impressive 69% growth compared to last year. The market immediately rewarded the stock as it blew past its prior all time high at 2688 for an after market high of 2760. During the conference call, the board explained some of the advantages for this quarter such as the foreign exchange tailwinds and the comparisons with last year’s quarter which was affected by Covid; as a result, they expect that harder comparisons will arise for the next quarter and their expectations for such a huge beat are smaller. As a result, the stock dropped to around 2720. See how it acts today, as it will be a barometer in the tech sector.