Before the Open (May 17)

Good morning. Happy Tuesday.
The Asian/Pacific markets closed mixed. Europe is currently mostly down with moderate losses. Futures here in the States point towards a flat and mixed open for the cash market.

After two weeks of consolidation, the market took a big dump yesterday. The Nas and Russell have clearly broken down from their triangle patterns; the Dow and S&P are sitting right near support. I think the Russell is salvageable; the Nas on the other hand is broken and absent a surprise outside force, will go lower and fill the gap from last month. Large cap tech stocks such as AMZN, AAPL, GOOG, MSFT and CSCO all got hit hard yesterday. Even mid cap techs such as NFLX and PCLN took big hits. Only INTC looks good. The market will not go up without broad participation among these stocks.
Here’s an update of the 60-min charts. Dips are shortable until at least those April gap ups fill…or until we get a total washout from the breadth indicators. More after the open.

headlines at Yahoo Finance
today’s upgrades/downgrades
yesterday’s sector performance
this week’s Earnings
this week’s Economic Numbers

0 thoughts on “Before the Open (May 17)

  1. The market is is distribution but nothing goes up or down in a straight forward manner. The only group holding this market up in the past week have been some of the big – mega caps like AET. The growth stocks started rolling over since 2 weeks ago.

  2. OpEx means something, but the EU is “Profiling”, or reprofiling loans again.
    The end of Fed expansion is not clear, but most likely an adjustment like
    yesterday and maybe OpEx does not matter when things get adjusted. Gaps do
    not always get filled.

  3. Better earnings finally getting outweighed by the worries of many underlying issues. Shouldn’t the big question be – Can companies maintain good earnings ?
    If not then look out below !

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