The stock market has surprised many pundits this week as the sharp drop at the end of last week had some fearing another round of selling this week. Monday's late reversal suggested that the buyers, not sellers, were in charge. So far, the market has held up well, and though the ratio of advancing to declining stocks has been positive, they have not been stronger than prices.
The ratio was about 3 to 2 positive Tuesday and also closed positive on Monday. The McClellan oscillator has moved back above the zero line while the NYSE A/D line is quite close to making another new high. The S&P Case-Shiller Housing Price Index was positive, Tuesday, and Monday's Pending Home Sales were stronger than expected.
Of course, the week is not over, and it is the weekly close that will be more important. A weekly close in the Spyder Trust (SPY) above $188.50 would be positive. Later today we have the ADP Employment Report and GDP, followed in the afternoon by the FOMC announcement. Then we have the monthly jobs report on Friday. The market has been focused on the individual earnings reports, which have been considerably better than expected.
After the close, the better-than-expected earnings from Twitter, Inc. (TWTR) still disappointed the market as its shares are down over 11% in early trading on Wednesday. Yelp, Inc. (YELP) reports after the close today.
Many are now reconsidering their view on Apple, Inc. (AAPL) after its strong earnings. It just completed a $12 billion bond offering that was met with over $40 billion in orders.
The market is also questioning its long-term outlook for Amazon.com Inc. (AMZN) as the stock price has plunged after its earnings report. As the month draws to a close, a look at the monthly charts of these two tech giants can help one identify long-term opportunities.
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.