Tech Giants Collasped Across The Board, Nasdaq Down!
FUNDAMENTALS
Tech giants continued to disappoint across the board no matte how their earnings turned in, resulting in a 1.5% drop in the Nasdaq composite in a single day, the greatest single day drop in 2 months! Cramer continues to call a sell on the tech sector as giants like IBM (-0.57%), Apple (-6.19%), CISCO (-1.96%), Qlogic (-0.78%), INTC (-1.85%), NVDA (-8.28%) all collasped no matter how well their earnings turned in. Surprisingly, there seems to be no real reason for this huge correction in the tech sector except for the loud calls to sell by analysts. It sure seems like only the tech sector is hit this time round as the Dow didn't look like it is affected in anyways as it closed marginally lower by 0.07%. Oil continued to drop as we have expected yesterday after a slight bargain hunting. Overall, the tech sector seems to be hit by a strong tsunami of pessimism and traders should be careful to enforce stop losses.
TECHNICALS
The Nasdaq composite corrected sharply back down below its 2450 resistance level and onto its 50 days moving average support level once again. It did so on extremely heavy volume, with all short term momentum indicators showing strong downside momentum building up. The testing of the 50 days moving average is extremely critical at this point. If the 50 days moving average fails to hold up today, we should be seeing a testing of the bottom of its previous neutral channel at the 2400 level next. Overall, all indicators points downside for Nasdaq and traders should exit tech longs by now. The Dow on the other hand looks extremely healthy as it closed sideways, forming yet another step in its staircase formation as we have expected. It is not even strange to see the Dow pullback down slightly for a day from this point before rebounding to new heights. The oil chart is an unmistakable down down down, so, oil traders should have cleared all long positions by now.
Free Weekly Stock Market Calendar Here!
Tech giants continued to disappoint across the board no matte how their earnings turned in, resulting in a 1.5% drop in the Nasdaq composite in a single day, the greatest single day drop in 2 months! Cramer continues to call a sell on the tech sector as giants like IBM (-0.57%), Apple (-6.19%), CISCO (-1.96%), Qlogic (-0.78%), INTC (-1.85%), NVDA (-8.28%) all collasped no matter how well their earnings turned in. Surprisingly, there seems to be no real reason for this huge correction in the tech sector except for the loud calls to sell by analysts. It sure seems like only the tech sector is hit this time round as the Dow didn't look like it is affected in anyways as it closed marginally lower by 0.07%. Oil continued to drop as we have expected yesterday after a slight bargain hunting. Overall, the tech sector seems to be hit by a strong tsunami of pessimism and traders should be careful to enforce stop losses.
TECHNICALS
The Nasdaq composite corrected sharply back down below its 2450 resistance level and onto its 50 days moving average support level once again. It did so on extremely heavy volume, with all short term momentum indicators showing strong downside momentum building up. The testing of the 50 days moving average is extremely critical at this point. If the 50 days moving average fails to hold up today, we should be seeing a testing of the bottom of its previous neutral channel at the 2400 level next. Overall, all indicators points downside for Nasdaq and traders should exit tech longs by now. The Dow on the other hand looks extremely healthy as it closed sideways, forming yet another step in its staircase formation as we have expected. It is not even strange to see the Dow pullback down slightly for a day from this point before rebounding to new heights. The oil chart is an unmistakable down down down, so, oil traders should have cleared all long positions by now.
Free Weekly Stock Market Calendar Here!
Labels: fundamental analysis, investment, share market, stock market, stocks, technical analysis
posted by Jason Ng at 7:57 PM
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