Tech Stocks take a Tumble, Sell Timing?
Howdy folks, it’s Wednesday, July 17th, and we've got ourselves a mixed bag in the stock market today. The Dow hit a new high, while the NASDAQ took a nosedive, marking its worst drop since the end of 2022. Big tech took a beating with $NVIDIA(NVDA.US$ down over 6%, $Meta Platforms(META.US$ down over 5%, $Tesla(TSLA.US$ off by more than 3%, and $Apple(AAPL.US$ slipping 2.5%.
Why did tech stocks take such a tumble? Is this the end of the road for the stock market rally? If this is
On the macro front, the Federal Reserve’s Beige Book survey showed that the U.S. economy is inching along into the third quarter, with some districts seeing flat or even declining activity. According to the report released Wednesday, employment numbers saw only a slight uptick.
Federal Reserve Governor Waller said on Wednesday that the time for cutting interest rates is "getting closer and closer."
Lookin' at the charts, the S&P 500 is still riding an overall uptrend, butthe big bearish candle of today signalsa short-term pullback. If it sees deeper adjustments in the near future, keep an eye on the previous high from the consolidationarea. And remember, try to steer clear of trading in the opposite direction with indexto avoid losses from systemic risk.
On the individual stock front, NVIDIA took the lead in the chip sector's tumble, falling over 6%. Reports are sayin' that the U.S. government is considerin' stricter trade control measures to prevent companies like NVIDIA from providin' technology to certain countries.
From a technical standpoint, NVIDIA's current movement aligns with our previous analysis, with the short-term pullback still in play. Compared to earlier pullback, this one might take a bit longer and go a bit deeper before it's done. For those lookin' to buy, stick with us as we watch for clearer signals that this pullback is over.
Additionally, Meta dropped nearly 6%. Republican presidential candidate Trump reiterated in an interview that he has no plans to ban TikTok, sayin' that such a move would only benefit Meta’s boss, Mark Zuckerberg.
Bouncing back to the technicals. Meta slipped of its uptrend line and is now on a downtrend. Currently the price has pulled back into the previous high-volume area, marked as Area A, where there is some support. But whether it can hold is uncertain. Even if it does, any bounce would likely be short-term, as the trend has clearly reversed. $Invesco QQQ Trust(QQQ.US$
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