10/26 Recap

The market is getting hit hard, with tech leading the way lower. Today we had some pretty nasty moves from some of our leaders. Tomorrow morning we have PCE and this afternoon you have Amazon reporting which should give alot of depth into the consumer and their health along with the cloud being the biggest player there.

The SPY continues its breakdown below the 200. The 8 ema has now crossed below it, and this is just not a market that is seeing buying at this moment. It really goes back to when the trend broke in the piece I wrote on Sept 24th. The market has been weak for a month since, it is really not anything abnormal, weakness usually takes a few weeks to play out, we’re now 4-5 weeks into this.

Microsoft fully reversed on decent earnings and has now filled the gap it created. Not ideal because it reported a fairly strong quarter.

Apple has not even reported and it finally broke the 200 day today. This isn’t a good sign for markets when the SPY has lost the 200 and now the biggest component follows suit. Apple report next week could get messy if they report a 4th straight negative quarter.

The TNX is at the lows of the day at 48.xx but it still isn’t breaking below the 8 ema. Bulls would like to see that as a confirmation yields are breaking down otherwise it could be flagging for another leg up.

Trends