It owes to some slight relief after Intel and Amazon reported better earnings, with Nasdaq futures seen up 0.8% currently. But that still pales in comparison to the 1.8% drop yesterday, in which the index took out its 200-day moving average (blue line) as well:
Nasdaq Composite index daily chart
That’s not a good look for tech stocks but perhaps not all is lost just yet. The Nasdaq is running into support from its 100-week moving average at 12,573 with the 200-week moving average at 12,350 also in focus currently. Those will be the next two key levels to watch in the week ahead for the index.
If that holds, at least dip buyers can still lean on a key area to rebuild a case for a turnaround. But break below, and that means tech stocks and equities sentiment in general might be in for a world of hurt heading into November.
S&P 500 futures are up 0.6% while Dow futures are up 0.3% on the day now but it comes after a rather poor showing yesterday in Wall Street. That is still leaving a sour taste for investors on the week, so perhaps stocks can only look to salvage some pride left this week.
And if you’re banking on the mantra “sell in May and go away”, you’d probably have to think twice about getting back in after Halloween when viewing the technicals at the moment.
