Market Dip and Software Surge: What's Next?

Summary

Today's market saw pressure, with software stocks like DataDog and Fortinet initially rising on earnings but then pulling back. CoreWeave's earnings after the bell also showed weakness. Tomorrow's key event is the jobs report, which could impact unemployment figures. The S&P 500 ended the day down, forming a bear flag consolidation pattern, though it's just one down day for now. For the immediate future, the S&P 500 is targeting around 746 points, with a downside support near 716. The QQQ is approaching a key bullish threshold around $78-$79, facing overbought conditions. The IWM and SMH also experienced significant drops. In commodities, gold and silver showed positive moves, with silver up about 12% from recent lows. US oil is showing signs of potential support, with two consecutive days of wicks indicating buying interest. Natural gas remains in sideways chop, waiting for a clear move above $2.90. Bitcoin is testing a critical support level around $79,523. Several companies reported earnings: DataDog soared over 37% on strong earnings and revenue beats, though profit-taking is anticipated. Fortinet also saw a large surge on excellent earnings. MongoDB showed a nice breakout from consolidation. Axon Enterprises jumped over 10% after a solid earnings beat. Google is nearing Nvidia's market cap, a significant shift, but needs to retrace a recent breakout. Nvidia is at a critical juncture, facing resistance levels to re-enter its parallel channel. Cloudflare and CoreWeave showed mixed post-earnings reactions, with potential pullbacks expected. Coinbase is testing near-term support around $184 and a gap fill near $175, with longer-term support below $150.