Bearish Earnings Reactions Raise an Eyebrow 🤨

TSLA, NFLX, DFS and TSM are all lower this morning.

Technical Edge 

• NYSE Breadth: 66% Upside Volume

• Advance/Decline: 63% Advance

• VIX: ~$14

Negative earnings reactions out of TSLA, NFLX, GS, DFS — down 12% 👀 and TSM — raises some eyebrows about the current environment.

That said, many stocks have had blistering rallies. The Nasdaq is up 37% YTD and several of these stocks — like TSLA and NFLX — have exploded even more. So there’s a lot to consider when looking across the board.

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As long-time readers will know, the day I miss my charts, I must really not be feeling it! Quite ill at the moment, although I did get an update on our open positions (3 trims) and a look at the S&P.

SPY

Sticking with the 30-min chart & 4-hour 10-ema overlay (the blue dashed line). If we get a bit of a flush lower today, the $452.50 level, then $451s could be in play as potential support zones.

• Upside Levels: $456-56.50

• Downside Levels: $452.50, $451.75 to $452

The risk we run on the daily chart is breaking yesterday’s $454.11 low and failing to regain it, opening up more downside risk: 

S&P 500 — ES Futures

If we break the 4580 level and can’t regain it, it puts the 4559 to 4568 zone in play, then potentially the big 4530 area. Given that we’re clinging to 4580 in Globex, it will require a notable flush to get us to 4530 today.

• Upside Levels: 4600-10, 4620

• Downside levels: 4580-82, 4559-4568, ~4530, 4493-4503

SPX

• Upside Levels: 4578-80, 4600

• Downside Levels: 4557.50, 4534, 4512, 4500-05

V

Discover (DFS) falling 12% on earnings isn’t a great sign, but it’s not budging Visa (V) so far this morning. If it does, let’s see if we dip into the $234-36 area. That puts a retest of prior resistance in play, as well as the 21-day moving average.

V does report next week, FYI.

Open Positions — Another Round of Profit Taking