Troubling trend in market?

This market is defying logic by reacting negatively to extremely positive earnings, case in point NFLX, VICR & more......

Leading averages are showing disturbing divergence, which may not bode well for this TAPE...

Here are snapshot of key indices :

DOW             Down 5.76%

S&P 500        Down 5.89%

Nasdaq           Down 8.41%

RUT               Down 11.48%

SOX               Down 16.30%

Here are few stock snapshot to further ponder :

GOOG           Down 13.93%

AMD             Down 13.93%

AMZN          Down  13.97%

NVDA          Down   21.72%

FB                Down   29.54%

This week AMD Reporting on Wednesday

AMZN reporting on Thursday

GOOG reporting on Thursday

IF the reaction to good earnings report is going to be the same then all 3 stocks are going to enter " bear market "

NVDA & FB have entered " bear market " territory already.......

Nasdaq is below 200 DMA.....

SOX has entered " bearish cross "

DOW & S&P 500 are above 200 DMA.....but below 50 DMA

I have given enough statistics for all traders and investors to exercise " caution " in near term and watch reaction to earnings closely.

My conclusion is, that " trend is NOT your friend "

Good luck with your own analysis and your comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed