Earnings Season Fires Up. Trading AMD, NVDA

the S&P held up well last week.

Technical Edge — 

• NYSE Breadth: 41% Upside Volume 

• Advance/Decline: 37% Advance 

• VIX: ~$17

The strength in the bank stocks — names C and JPM — combined with “Fry-day” to give us some afternoon strength into the weekend. 

Now coming into a fresh week, earnings are really set to pick up. While the bulls have mostly been in charge, keep in mind who the leaders are. Just seven stocks — AAPL, MSFT, META, GOOGL, NVDA, AMZN, TSLA — have generated 88% of the S&P 500’s gains so far this year. 

While we could see some rotation into other sectors, investors must be aware that a rug-pull in these names could throw some cold water on the S&P. 

Note on the S&P: This applies to the ES, SPY and SPX. One potential scenario building to for Monday would be a dip down to the 10-day ema and a bounce back up through Friday’s low. If this scenario occurs, we could be long on the reclaim of Friday’s low, with a stop-loss just below the current session low and look to play a bounce. 

S&P 500 — ES 

• Upside Levels: 4172-78, 4190, 4200, 4217-25

• Downside levels: 4142.50 (March high) + 10-day, 4115, 4095-4100

SPY