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American Stock Market is Preparing for a Reversal

2/6/2023 12:35 PM

One of the leading US indexes Nasdaq 100 shows corrective dynamics, being at around 12500.0, reversing downwards amid disappointing financial results of large companies. The situation cannot be changed even by the strengthening of the positions of the American currency, supported by data on an increase in the Nonfarm Payrolls by 517.0 thousand jobs with an expected growth of only 190.0 thousand.

The largest online retailer Inc. reported close-to-loss quarterly earnings per share of just 0.03 dollars, worse than the 0.17 dollars forecast. At the same time, the company increased its revenue from 127.1 billion dollars to 149.2 billion dollars. Technology giant Apple Inc. posted earnings per share of 1.88 dollars, lower than the expected 1.94 dollars, and revenue of 117.2 billion dollars versus a forecast of 121.88 billion dollars. In turn, Alphabet Inc. reported revenue of 76.05 billion dollars versus a forecast of 76.07 billion dollars and earnings per share of 1.05 dollars, down from the previous quarter's figure of 1.06 dollars.

The growth leaders in the index are Regeneron Pharmaceuticals Inc. (+4.25%), Gilead Sciences Inc. (+3.82%), Apple Inc. (+2.44%), Microchip Technology Inc. (+0.96%).

Among the leaders of the decline are Datadog Inc. (-8.64%), Inc. (-8.43%), Atlassian Corp. (-7.19%), Intuit Inc. (-6.28%).

On the daily chart, the index quotes are correcting as part of the global Expanding Formation pattern, approaching the resistance line.

Technical indicators are holding a buy signal, which is about to start weakening: fast EMAs on the Alligator indicator are still away from the signal line, and the AO oscillator histogram is forming new upward bars, being in the buy zone.

Support levels: 12200.0, 11400.0. | Resistance levels: 12800.0, 13600.0.

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