4/27/23 In The Shadow of Giants


Wednesday was a mixed bag on Wall Street…

Overall the markets appeared weak. But the selling was limited as a giant in the tech space held up the rest of the market.

Image by Lonely Planet

The indexes closed mostly lower, with a notable hold out…

  • Dow Jones -0.7%
  • Nasdaq +0.5% ←
  • S&P 500 -0.4%
  • Russell 2000 -0.9%

Notable Names

Microsoft (MSFT) was the bright spot in the market during Wednesday’s session…

Table from Finviz

  • Shares popped more than 7% after reporting solid earnings Tuesday evening
  • During its call, executives said AI products are driving sales
  • Also, a UK Court blocked its acquisition of Activision (ATVI) -11%

Following in MSFT’s footsteps … Facebook parent Meta (META) is up more than 11% in premarket trading.

  • The company smashed earnings and revenue expectations on its earnings call 
  • The growth was credited to … “AI work is driving good results”
  • This morning, futures are up across the board following the upbeat report

Sector Round Up

Wednesday’s session failed to generate many gains outside the Technology (XLK) +1.5% sector…

The other 10 sectors ended the day in the red.

At the bottom…

  • Healthcare (XLV) -1.4%
  • Industrials (XLI) -1.9%
  • Utilities (XLU) -2.4%


The VIX is undoubtedly pointing lower…

VIX Daily Candles – Chart by thinkorswim

After breaking through one critical level at 18, it appears stalled below 20.

The important thing to remember is markets never move in straight lines.

A reversal lower could be the beginning of a summer rally … Or at least the end of fear-based selling.

No reason to believe the bears are in charge…


Two big news items to keep an eye on today…

  • This morning the advance GDP estimate is scheduled for release at 8:30 AM.
  • At the end of today’s session, Amazon (AMZN) reports earnings


ELEV support at $2.50
CMG on watch
SONM support at $1
APLT support at $1.40
PRG support ta $26
IDYA support at $18
SA resistance at $14
TDUP support at $2.60
CBAY support at $9.60/$10

Secondary watchlist—float 100+ million

TIO support at $2
XERS support at $2.20
TGTX support at $20/$22
RIOT support at $10
HIMS support at $10.50
LEGN resistance at $70

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