Round Number Relevance:
In our Tuesday Technology Note, we looked at the possibility that GOOGL was going to witness a bounce at the very round 2000 number. It was thrust into that area on the back of the ill-received earnings reaction from SNAP. At the moment that swoosh lower looks like it was an opportunity. Looking at the group as a whole via the major S&P sectors, technology is still firmly underperformed with the XLK down more than 20% YTD and just the ninth best of 11. But earnings reactions are starting to show resiliency, with SNOW and NVDA acting decently following Wednesday’s aftermarket debacles. The SMH is higher by almost 4% this week thus far, which would be one of its best WEEKLY showings in 2022 so far. Below is the chart of the QQQ which is right back to the very round 300 figure, a level that was resistant in mid-2020, and support in early ’21. Was the recent move below a bear trap from the 300-400 range? We will soon find out as it is right there at the CLOSE of trading Thursday.