Spread betting markets are experiencing several increase in volatility during the previous week, as series of corporate earnings releases thrust markets in opposing directions at different points in the week. There were of course several positive undertakings as quarterly earnings at Apple, Inc. (AAPL) propelled the consensus estimates out of the projected scale. Many have given feedbacks that the earnings beat came mostly as a function of the reality that the preliminary estimates were perhaps just too low.
However, should this be the situation, the overall performance was still fairly remarkable, as the company was able to surpass the projected revenue numbers, yet approximately $2 billion which was really huge. A fairly large percentage of the publicly traded firms don’t even have the allotted market cap of such capacity so it wasn’t really much of a surprise to see the stock rally during the following sessions.
This was not, in actuality, representative of the action seen during the entire week of trading. Tech stocks on a whole posted its worst performance in more than two weeks which no small feat given the simple fact that the index has already been surpassed earlier this month.
One of the possibly worst events came from Amazon, where overspending and missed revenue estimates resulted in the stock going down nearly 10 % in the following session. The tech sector will most likely be a key area to look out for the coming weeks as there could potentially be some sort of bargaining hunt with tech stocks which is now being traded at relatively low levels.
From a technical point of view
The DAX is likewise at a precarious position, trading at the upper end of its recent range. However, the index is also showing a series of lower highs, therefore if a failure here would be a positive indication that there will be a good probability of yearly lows ahead. Bulls will be needing a patent break of resistance at 9700 in order to feel secure on the longer term prospects of the positive trend. If this figure was below, support can be located in the 9200 region and a downside break in that region would most possibly tend to mount up.
The S&P 500 posted a comparatively strong rally after it bounced off from support in the 1820 region. The pattern which is being formed right now is remarkably given much interest given the fact that there is a projected resistance at 1880. Should this level holds, there is a possible reversal pattern that could take place which could send prices much lover if ever no external aspect breaks the resistance at 1880. Since S&P investors would expect some increased volatility in the coming session, there might just be some promising results after.
The FTSE 100 is beginning to form a tight range in the middle of a much larger range, so the wider trajectory will be much difficult to assess into the next month. This simply means that it would make more sense in avoiding the index until such time there be a clear break of support or resistance with a much bigger trend developing. In the interim, there should be a daily close above the 6700 mark in order to expect a type of test of longer term resistance at 6850.