Stock Market Today: Mega Technology Give-Up

October 30, 2020, 1:44 pm EDT

Mega Technology Give-Up

Amazon (AMZN) and Apple (AAPL) lost about -6% after their earnings. Other big names also suffered together: FB, NVDA, NFLX. Only Google (GOOGL) is able to hold up the gains +4%. 

Technically, all major indexes (DJIA, S&P500 and Nasdaq) gave up their 50 moving-average lines easily. This is a bearish signal for an intermediate trend. Long term trend line is 200 DMA which is being tested now for DJIA. If DJIA cannot hold on, then long term trend bias will turn to bearish. It means the bear market is on its way. 

Although S&P 500 and Nasdaq have buffer distance from their 200 DMA lines, situation could change quickly by US presidential election and COVID-19 development. Our view is bearish because this rally (March-October 2020) is based on stimulus and Fed effort during COVID-19 pandemic. If the virus keeps getting worse, the US economy will suffer again with limited help from the government post election era.

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