Are the bears regaining control after the latest earnings in tech?

$SPY pre-market chart

With futures down this morning, Asian and European markets down, it will be important for the overall market to hold the important support it has around 437. If we have no bounce, there is a gap to be filled to 434. Tech will be weaker after $AMZN and $PINS disappointed, so look if other sectors can contribute today. Wait for a reactionary low to day trade against. Trim some hedges into extreme weakness.

$QQQ pre-market chart

The tech sector will be in focus today after all big companies finished reporting their earnings. $AMZN and $PINS disappointed investors and analysts, so see how the other good reports are treated today. Our focus will be to buy on extreme weakness some strong names such as $AAPL, $AMD,  $FB and $MSFT and see if they can bounce. 360 is an important support level. Below that, 357 and 355 should offer some buying opportunities for scalping today. No rush in buying pre-market, as we might drift lower as it is the last day of the month and a Friday on top of that. Seasonality and low volume might accelerate things.

$AMD pre-market chart

AMD posted an impressive quarter and had two huge candles in the past two sessions. It will open in red today, see if it shows any relative strength for a day trade. Holding the previous high around 99 will make it easier to navigate. If this name is sold throughout the day, expect tech as a a sector to be in danger.

$TSLA pre-market chart

Impressive Day 1 candle today. It is one candidate to offer a red to green trade if the market conditions improve. See if it can hold more than half of yesterday’s candle for a continuation of this new active sequence. 662-665 is an important support area for today. If $TSLA manages to go green, this will be an important barometer for the entire market, as bulls might have a chance of reversing this day.

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