Market Crash Imminent? Key Levels & Big Tech Earnings This Week

Summary

This week is packed with major economic events and significant corporate earnings, starting with consumer confidence on Tuesday, followed by the highly anticipated FOMC statement and press conference on Wednesday. Thursday brings crucial economic data like advanced GDP and the core PCE price index, with unemployment claims and revised consumer sentiment on Friday. The earnings calendar is equally intense, featuring tech giants like Microsoft and Meta reporting Wednesday after market close, and Amazon and Apple on Thursday. Last week saw a bearish reaction to Tesla and Google's earnings, with Tesla experiencing its biggest post-earnings drop ever, impacting the overall market. Looking at the charts, the QQQ is showing more bearish signs by closing below its weekly range low, while the SPY is consolidating in the middle of its range. Key levels to watch for the QQQ are around 700 for potential upside and 640 for downside. The SPY's key support is around 740, with 750 as a resistance. Semiconductors are showing weakness, with the SMH needing to reclaim 580 to move higher, otherwise it could drop to 540. In individual tech stocks, Tesla is showing significant weakness, breaking below key support levels. AMD and Apple are showing more bullish potential, with AMD needing to break above 560 and Apple aiming for new all-time highs. Nvidia needs to clear 212, while Google is recovering from a bearish earnings reaction but faces resistance. A notable development is the introduction of single stock futures for 50 major companies, offering a new way to trade these stocks 24 hours a day without option Greeks, which could be particularly helpful during earnings season. Overall, the market sentiment is cautious, with a soft bias and openness to playing both sides, emphasizing careful observation of key technical levels.