A one group of companies will likely determine the next big move in stocks...
Some of of the largest companies in the stock index are due to report their latest business results.
The big techs release their results after the stock market closes tomorrow... $660 billion social media firm Facebook (FB), $1 trillion Internet giant Alphabet (GOOGL), $1.6 trillion consumer electronics behemoth Apple (AAPL), and $1.5 trillion online retail and web services giant Amazon (AMZN).
Those seven businesses represent about $5.3 trillion in market value... They're indicators of how the U.S. economy is doing... And they're all part of the tech-dominated Nasdaq 100 Index.
Since late March, the Nasdaq 100 is in a big uptrend. Over the past few months, the index has traded in a tight, rising range called a "channel"...
You can see the Nasdaq 100's rising uptrend channel line in my chart. If it breaks below this trend line that I believe is the most important inflexion point it could be make or break for the market.
If tech leaders report weak earnings, the Nasdaq 100 could break down from its channel...
That would be a big short-term warning sign. Tech stocks have been the leaders during this recovery. So if they close below the lower boundary of their channel (for at least 2-3 consecutive days), the Nasdaq 100 could face a quick 10 to 15% decline, down to its June low around 9,940
Whether the Nasdaq 100 continues higher or drops lower, the other major indexes will likely follow.
I’m currently holding gold, silver, gold stocks, and bitcoin, which I think is in the midst of a multi year bull market.
With Apple, Facebook, Google, and Amazon reporting tomorrow afternoon, just be sure to have your ducks in a row before then.
All posts and charts are for educational and illustration purposes only
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