Big Tech Continues to Disappoint

But so far, the market is paying the price

Technical Edge — 

• NYSE Breadth: 62% Upside Volume

• Advance/Decline: 59% Advance 

• VIX: ~$27.50

Microsoft, Alphabet and now Meta have all disappointed this week with earnings. Tesla disappointed last week when it reported. Yet the S&P continues to power higher.

Who would have thought that ~$4 trillion in combined market caps could disappoint and the market would shrug its shoulders. Anyway, the real test comes tonight when Apple and Amazon report.

I don’t want to say they could make or break — especially AAPL — but they will have big implications. Apple is key from a sentiment standpoint, while AMZN will be important from a holiday-spending perspective.

There’s a pretty reasonable setup in SPY now, so let’s look at that.

S&P 500 — ES 

Above has the H4 chart on the left and the daily chart on the right, which highlights the 3800 to 3820 area as potential support and 3860 to 3870, which has been current resistance. The latter also has the declining 50-day moving average working as resistance. 

On a dip, keep an eye on the 10-ema on the H4 chart, as well as the 3820-ish area for a possible bounce. 

Failure here could put 3800 in play, followed by 3775. 

SPY