With more big-tech earnings, the Fed meeting, and the S&P and Nasdaq at key support levels...next week is going to be a critical one for the stock market.
Some Cracks are Showing Up in the Small Cap Rally
Jan 3, 2024
How many people realize that the S&P 500, the NDX Nasdaq 100…AND the Russell 2000…have all declined over the past seven trading days? This raises questions about how long the small cap space can hold up if (repeat, IF) the tech stocks continue to decline.
Several developments (both fundamental & technical) are telling us we could be seeing a key turning point for the markets.....This is especially true given that one key sector is showing signs of an important change in its intermediate-term trend (not just its short-term one.)
There are some more early signs that the MASSIVE investment into AI is not producing revenues/profits as quickly as the stock market has been pricing in over the past year.
Earnings and (more importantly) guidance should still be the most important mover of the stock market over the coming weeks...especially for the tech sector.