Hi Everyone
Mixed news is the how this earnings will be remembered. Some stocks have been flying and others have been hammered! Let’s start with the main indices:
SPY (S&P ETF)
The SPY is now showing signs of an inverse head and shoulders as shown with the blue dotted lines. We have resistance from the high on the 15th of April, and a Doji from yesterday. If we rise above the resistance of the 15th with a positive OVI, higher prices could be on the horizon. Watch out for the updated OVI in a few hours.
QQQ
Similar scenario with the QQQ (Nasdaq ETF). We have resistance at $58, a Doji from Monday, and our the OVI has been negative for over a month, struggling to break into positive territory. A break of the $57.00 level in conjunction with a positive OVI can get the QQQ moving further to the upside. Note that while the OVI hasn’t been positive, it’s barely been negative either over the last few weeks.
BIDU
I’m big into BIDU and this has been a wonderful trade if you’ve capitalized on what the OVI has been suggesting. We may be in store for some consolidation at these current levels and with the OVI still strong, more upside may be to come as evidenced by today’s strong breakout to new highs. Happy days!
AAPL
As recently mentioned AAPL’s OVI had a few negative days, and we were watching that support level around $326. Now, remember my words – “you have to be a brave soul to short AAPL” and so it proved. Support broke intraday on Monday and then AAPL comes storming back by the close and another strong day on Tuesday. I’d expect to see the OVI back in positive territory after tonight and then could be a case of finding a new resistance area to buy at. A few days consolidation would be helpful in that regard.
All the best
Guy