Earnings week has had a slow start with CITI’s profits falling, dragging the markets already sluggish start with Bernake stating that the dull housing market continues to be a significant dead weight on the economy Monday night. That combined with crude oil prices hitting a record high today of $88 could explain the start of the week in favor of the bears.
On a postive note 2 of the largest tech companies reported solid earnings today. IBM reported earnings up 6% and beating the streets expectations.
As well Intel’s Q3 profit jumped 43% and beat the street estimates by a penny. These two large companies earnings could bring in some positive sentiment into tomorrows session, and i already noticed most stocks are trading higher in after hours trading today. For instance INTC is trading up over 5% after hours which entails a breakout of INTC’s ascending triangle pattern currently in play.
Looking at the DOW techincally it appears that there could be some more downside as today the 13ema trend indicator was broke down though there is always the possibility of a false breakdown.
Looking at the Nasdaq things are looking much better as it was a fairly weak move for the bears and price is sitting right on top of the 13ema. Along with the positive earnings from 2 large tech companies i wouldn’t be surprised to see the Nasdaq in the green tomorrow.
