Support and resistance are fundamental concepts in technical analysis, as is the idea of trend. In today’s post, we’ll look at several tech stocks catching traders’ eyes as they break support.
The first is Alphabet, which has a significant weighting in the broader market indexes. The stock found some buyers near 105 in May and has been treading water ever since. However, after failing to break out of the range in August, it’s now breaking to fresh lows.
Sellers in Meta pushed it to new lows this week, and it’s now trading back at its 2020 lows!
Microsoft has fared better, not yet breaking its June lows but getting close.Â
And finally, there’s Apple, down a little over four percent this week after an epic rally into mid-August. It’s held up the best of the big boys, but if it starts to follow some of its peers lower, it’ll be challenging for the market to make any meaningful upside progress.
Technical analysts pay attention to some of the largest stocks in an index or market to gauge where the market could head next. And if you look through the top holdings of the Nasdaq 100 or S&P 500, you’ll see many more fresh lows than highs.
That, along with bad news from companies like FedEx, is a good reminder that we’re still in a bear market. Until the price action and earnings reports of the biggest companies in the world start improving, the days of pain are likely here to stay. Or so they say… ð