Market Analysis (29 April’21)

U.S. stocks inched higher in afternoon trading Thursday, with investors weighing improving economic data and the threat of rising bond yields.

Tech Earnings

All 5 major tech leaders – GOOGL, MSFT, AAPL, FB and AMZN — reported their earning results. When analyzing Nasdaq’s volume data, we see that the market participants were eager to bid up tech stocks leading into the earning reports, however, post reporting buying activity has been somewhat muted. It appears that a lot of hedge / investment funds decided to sell into strength and book their profits during the last three trading sessions.

Nasdaq’s Up Volume – Down Volume and NDX, 15m charts

Given this market dynamics, the odds favor continued consolidation below the 14000 level in the short-term. However, once the index breaks out and moves above the 14050 resistance, this will force short-sellers to cover their short positions (e.g., shortsqueeze) as well as lead to FOMO among the long-biased investors who sold their tech holdings during the last several sessions.

NQ, 1h

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