10/26/23 Tanking Tech


Tech giants Microsoft and Alphabet reported earnings after Tuesday’s close. The results pulled the market in separate directions on Wednesday.

  • MSFT +3%
  • GOOG & GOOGL -10%

Risk-on stocks got clobbered during Wednesday’s session. 

The indexes all closed with losses.

  • Dow Jones -0.3%
  • Nasdaq -2.4%
  • S&P 500 -1.4%
  • Russell 2000 -1.7%

The Nasdaq officially entered a correction, falling more than 10% from its previous record high.

The S&P 500 fell below the critical level of 4,200 for the first time since May.

Sector Round Up

The selloff, while intense, was not all-inclusive. 9 of the 11 sectors closed with losses.

The winners…

  • Utilities (XLU) +0.6%
  • Energy (XLE) +0.3%

At the bottom…

  • Consumer Discretionary (XLY) -2.0%
  • Real Estate (XLRE) -2.1%
  • Communications (XLC) -4.3%

Notable Name

Google parent Alphabet (GOOG, GOOGL) was the single biggest contributor to the losses, falling nearly 10% after disappointing earnings.

Image from Google
  • The company topped projections on revenue and earnings
  • But poor growth in cloud computing sent share prices lower
  • The two tickers shed about $155 billion in market cap combined


The S&P 500 fell into a technical support zone during Wednesday’s session…

SPY Daily Candles – Chart from thinkorswim

A look back to this time last year reveals a local bottom.

And current RSI levels are nearing oversold.

We maintain our bullish outlook and will add to our seasonal swing positions today.

Your latest readout…


This morning, Wall Street will look to the Bureau of Economic Analysis for the advance estimate of the Q3 GDP.

Your rules for big news releases…

  • The market’s reaction is more important than the news
  • Never trust the first move


^Open PositionMETC support at $11
SRRK key level $9
EPAC support at $28
PGTI support at $30
LOGI on watch

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