September 8, 2020
Technical support: The S&P 500 is currently down ~6.2% from last Wednesday’s record close and trading below initial technical support at ~3410. More significant support sits in the 3210-3280 pattern break out range. At ~11,008, the Nasdaq Composite (CCMP) is now resting just above technical support at its 50-day moving average of ~10,900 and within its pattern breakout range. The Nasdaq 100 (NDX) looks almost identical to the CCMP with support at 11,070 and it seems likely all three indices will hold their respective support levels before recovering in the coming weeks.
Next: Last week’s sell-off in Tech followed unquestionably disappointing guidance last Thursday morning from network systems provider CIEN. Several other Tech companies reporting earlier in the week saw some downside despite solid beat-and-raise results as expectations had become unrealistically high. But CIEN was the only fundamental disappointment. Tech companies due to report this week include SMID-cap COUP/WORK (today after the close) and ZS (tomorrow after the close). Some interest in LULU also after today’s close and PTON on Thursday afternoon. This week is also very busy with sell-side conferences where companies will be given an opportunity to update investors on the state of CQ3 business trends.