Tech remains quite strong vs. SPX despite some mixed results

QQQ, DJIA and SPX are right at October lows, and should attempt to make a stand this week.  However, this likely does depend on stellar Technology earnings along with a larger rolling over in both US Dollar and Treasury yields.  A sharp, high breadth Equity rally is needed nearly right away to prevent selling pressure into late October.  Given the degree of broader market weakness, the burden of proof is certainly on the Bulls.

At the time of this writing, following post-market close (Tuesday) earnings out of $MSFT, $HPQ, $GOOGL, haven’t helped to lift Equity futures in the post-market futures market.  MSFT rose, along with $DDOG, and $SNOW, while  both HPQ, $ADI, and GOOGL fell.  (5pm EST) Thus far, earnings look like a mixed bag for Tech ahead of their respective conference calls.

Given that broader Equal-weighted gauges for US Equities have slipped to the lowest levels of the year, markets are truly much weaker than what might be expected when just eyeing QQQ or SPX on their own.  A strong lift out of Technology is thought to be important towards seeing the market bottom out, along with evidence of stabilization out of both the Bank stocks and Healthcare.

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