Last week big tech began reporting earnings with Meta being the big winner for the week as it jumped over 11% on its earnings report. However, Microsoft fell over 12% the same day and dragged the rest of tech lower. Apple and Tesla also reported, but they were essentially non events for the markets as the stocks didn't move much on the reports. This week we will have more tech reports from Advanced Micro Devices (AMD) on Tuesday, Google on Wednesday, and Amazon on Thursday. On Friday we will also have the January employment situation with nonfarm payrolls and the unemployment rate.
The S&P did reach new all time highs last week, breaking above 7,000 for the first time in history as it hit a high of 7,002.28 before pulling back to finish the week relatively flat with a gain of 0.3%. The Nasdaq got within 0.1% of its all time high set back in October of last year, but it failed to break through and ended up closing the week slightly lower - posting a loss of 0.2%. Small caps were the big loser as the Russell 2000 closed down 2% for the week and it has now pulled back about 4.5% from its all time highs set the prior week.
For this week, the Nasdaq does not start any new ranges as it did not break through its primary uptrend last week. Its prior uptrend (purple) also remains as valid resistance and the first weekly resistance to watch from it will be at about 23,775. If it breaks through that level, then its primary uptrend (white) will be next at about 24,085 which would be a new all time high for it. Right now there is only one support level to watch which is also from its current primary uptrend, and that level will be right around 23,000 this week if we see a continued pullback.
The setup for the S&P is virtually identical to the Nasdaq's and it also did not break through its primary uptrend last week, so it also does not start any new trends going into this week. The first resistance to watch will be at about 7,015 from its prior uptrend (purple) which remains as valid resistance for now. After that, its primary uptrend (white) will also be resistance at about 7,045. If we do see a larger pullback, then the only support for now to watch will be at 6,705 for this week which is from the primary uptrend.
The Russell 2000 broke through all of its prior uptrend supports, including its previous primary uptrend, so now it starts a new weekly downtrend going into this week. Resistance from this new downtrend (white) will be first on a bounce and that level to watch will be at about 2,635. After that, the next resistance will be at about 2,662 from its prior uptrend (yellow) and then there would be more at about 2,690 (blue). Meanwhile support from its new downtrend will be down around 2,533. If that does not hold and there is a big sell off, then its next support would be just above 2,500 from its prior downtrend (purple).
