Apple and Amazon results likely to pound markets tomorrow

Keep an eye on S&P 500 1,400 and Dow 13,000.  We are very close to violating these levels on the downside, and with the poor results from both Apple and Amazon it’s a good bet that tomorrow, being a Friday, coupled with this negative news, could see stocks down hard; possible down enough to violate these support levels.  The NASDAQ Composite index has already violated 3,000, and if we see the S&P 500 and the Dow violate their support levels, the markets will certainly react more negatively in the coming days and weeks.  Apple in particular has been a strong driver for positive stock market performance, pushing the technology sector higher, which has held the leadership in the market during this recent rally from the lows at the end of May/beginning of June.  With the loss of Apple’s leadership in the sector, and so many other tech companies, including Amazon, faltering, I can see no other sectors stepping in to take technology’s place to support current market levels.  My recommendation remains – stay on the sidelines and hold cash for better valuations.

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