Any weakness in [Big Tech’s earnings reports] could be the catalyst for the market weight S&P to decisively break below its 200 DMA which I’ve been forecasting for three weeks now – “Market Technicals Heading Into Big Tech Earnings”, Top Gun Financial, Monday 10/23
Three weeks ago I pointed out the internal weakness in the market and that the market weight S&P would break down imminently (“The Market Is About To Break”, October 3). I re-iterated that call on Friday (“The Market Is About To Break – Part II”, October 19) and wrote on Monday that Big Tech earnings could be the catalyst. Today it happened just like I said it would: The market weight S&P decisively broke below its 200 DMA.
I didn’t think Google (GOOG/GOOGL) earnings were that bad but the market sent the stock down almost 10% Wednesday. Ditto for Facebook (META) which looks poised to sell off Thursday based on the after hours despite what looked like a solid report to me. The entire financial market will now be repriced for a recession and the resumption of the bear market. My suspicion is that bonds will finally (Finally!) rally. The Fed has overtightened, there will be no soft landing and the bull market has been canceled. Amen.