Twelve Charts This Week - 7/26/2024
Twelve Charts This Week - 7/26/2024
Read > > > Testimonials: what leading executives are saying about The Wednesday Letter.
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We wrote in this week’s TWL about Alphabet’s earnings that “if other companies reporting in the next two weeks show a similar pattern (modestly beating estimates but without big upgrades to guidance), we would have to think about the [technology] sector having perhaps exhausted its huge run-up that started in late 2022.” It looks like the market is already pondering the same question. The Nasdaq 100 was down 3.7% on Wednesday and down 1.1% yesterday. There are no meaningful tech earnings releases until Tuesday when Microsoft will report. But beyond next week, if we do a get a correction, here are the LIKELY SUPPORT LEVELS FOR THE NASDAQ 100 that technicians will be looking at: 18,350, the bottom of the channel; 17,500, the 200-day moving average; 17,000, the April 2024 low; 14,000, the October 2023 low. These represent declines of 11%, 15%, 18% and 32% from the peak of 20,690.97 reached on July 10. The probability of hitting the highest of these (18,350) is high and will certainly happen if any of the other Magnificent Seven or another large cap tech company disappoints.
🚨 Could be impacted by this: Nasdaq 100, S&P 500, QQQ, SPY, magnificent Seven, market rotation, Fed interest rate cuts.
