September 18, 2019

Tech stocks lead sell-off

Index & Sector performance 5/6/14

The Market:

Last night we noted 1872ES as a key level to watch.  If it held as overnight support then the index could look to target Friday’s 1886ES highs but if lost then we could see Monday’s lows of 1860.50ES tested and then 1850ES.   In overnight trading the S&P was only able to reach 1881.50ES falling short of Friday’s highs and by the open the futures were sitting at our key 1872ES level.  After some initial jostling around the 1872ES level, the index started to roll over in midday trading reaching as low as 1861.75ES slightly above our next key level of 1860.50ES which represents Monday’s lows.

Yet again the Russell 2000 led the broad indices lower but a close second was the NASDAQ as many tech names faced strong selling.  Yelp (YELP) closed down 13.39%, Twitter (TWTR) closed down 17.81%, Pandora (P) closed down 8.94%, and athenahealth (ATHN) closed down 13.86%.  Each company had individual news, YELP being investigated by a shareholders’ rights firm, TWTR lock-up expires, P had slightly lower listener hours than last month, and ATHN was named by David Einhorn as a short or what some are now calling getting “Einhorned” but overall it appears the rotation out of the higher speculative/beta/PE/momentum names that were so popular in 2013 continues.

Tomorrow’s session could be eventful with Fed Chair Janet Yellen testifying at 10am ET and the market will be paying close attention to her comments.  If the futures can double bottom here around 1860.50ES then a rally should face resistance at 1870ES and then 1875ES.  Below 1860.50ES and there is small support at 1856-57ES and then we again are focusing on 1850ES.

Economic Calendar week of 5/5/14

 

Reporting EPS 5/7/14 Pre-Market:

There are even more than what is listed below so please visit the Events Calendar for the entire list.  Please remember we filter our list for companies with average trading volume over 300K.

Companies reporting EPS 5/7/14 before market open


Analyst Comments:

Upgrades 5/6/14

Downgrades 5/6/14

Initiations 5/6/14

Price Target Changes 5/6/14

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