Buckle Up – It could be a big week

Recap of Last Week
Last week was July options expiration week. These weeks are usually bullish with elevated volume. We really did not see that.  Netflix staged an impressive rally / recovery after their earnings-driven sell off but other than that it was a slow week.  Oil and Copper stabilized for the time being, but on the whole commodities continue to move down. Divergences on the 60 minute and daily time frames of the major indexes ( SPX / NDX / RUT ) persist which has made me rather cautious heading into this week.

A Big Week for Earnings
Often times the week following options expiration sets the direction for the following month so I watch it closely. We have some big tech names reporting this week. The post earnings moves for these names should set the tone for the market.  Here are the names and dates.

  • Monday  AMC      GOOG
  • Tuesday AMC       TXN
  • Wednesday AMC   FB
  • Thursday AMC     AMZN and INTC
  • Friday  BMO         CVX and XOM    comprise roughly 50% of XLE

QQQ has continued to be the main driver within the market with the big cap names within QQQ setting the tone.  With that in mind, it does not get any bigger or more important than this week for tech.

Here are 60 minute charts for SPY / QQQ / and IWM.   Note the divergences and trend line breaks.

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