Monday Technical Video- 5 min on S&P, NASDAQ 100, and AAPL
Markets weakening with S&P back down to key 2900 area and breadth fractionally negative heading into the last couple hours of trading.
Technology and Financials both underperforming while Discretionary lagging more than any other sector with AMZN and NFLX both down more than 2%.
Other retailers showing some signs of pulling back also with TIF, JWN, KSS, GPS and M all within the 10 top worst performing stocks in the S&P and lower by more than 1.6%.
Treasury yields have largely stalled out, while the Dollar is still fairly weak
For now, unless S&P Futures finish under 2900, there’s insufficient weakness trend-wise to think markets start to accelerate lower, though the concentrated weakness in Tech is a definite concern along with the inability of Financials to muster much rally.
S&P 120 min chart- Pullback thus far has held where it needs to, but under 2900 on an hourly close, should lead to 2884 and then 2869-74 which is more important
S&P- Daily - Weakness has undercut Friday’s lows, but thus far not too much weakness, but a break of recent lows would be far more negative so under 2900, the real area of concern is 2869-72
TNX- early day rally in yields above 3.01 has now backed off given the equity selling, but still an important move in yields if not erased
NASDAQ- 100 Dec futures- All eyes on the NASDAQ 100 given tech weakness and this can’t afford to get under 7400 without causing a much larger pullback
Both AAPL and AMZN which I discussed on CNBC last week are meaningfully lower, greater than 1.70%
My interviews found me negative on both of these stocks in the short run, and my thought process is laid out here:
AAPL- My CNBC interview on AAPL- Bearish ahead of product launch
My CNBC interview on AMZN. Calling for move to 1650 from its prior 2045 area about 2 weeks ago