By: Scott Redler
The market will try and bounce from its extremely oversold state again. Yesterday’s up open met some QUICK selling pressure. 1,080-1,085 is hanging by a thread.
This morning we got a good GDP number and some positive earnings reports. This just might hold up the market for now. I see a ton of technical damage, BUT that does not mean we cannot trade short-term bounces.
The Rundown:
- The banks were a bit stronger than the market yesterday and have some room to rally.
- Tech is very erratic right now.
- Apple (AAPL) looks like it wants to break $198-200 for a move lower, but the action is erratic and frustrating.
- Amazon (AMZN) is opening near resistance in the $130-133 area after a huge earnings report and the announcement of a share buyback.
- Microsoft (MSFT) was a great long for us into earnings–it worked well, but I would sell the open.
- SanDisk (SNDK) is opening down after great earnings, but weak guidance. I would avoid it now.
- Research in Motion (RIMM) is poking its head at the descending trendline. It’s worth a look, as the stock exhibited good relative strength during the weak market days.
- Commodities are very weak. Hopefully all shorts have been covered in Freeport McMoran (FCX) and U.S. Steel (X). It’s time to find some kind of bounce.
