There are five tech giants that dictate market direction. All reflect bearish sentiment in the market but only Facebook (FB) is in a primary down-trend. Not enough to call this a bear market.
Facebook (FB) is the only one to have broken primary support. At present it is retracing to test the new resistance level at 150.
Alphabet is headed for a test of primary support at 1000 while declining Money Flow warns of selling pressure.
Apple (AAPL) also signals selling pressure and has penetrated its rising trendline. Expect a test of primary support at 150.
Amazon (AMZN) is stronger, respecting its LT trendline, but declining Money Flow warns of selling pressure. Breach of 1500 would be bearish.
Microsoft (MSFT) is strongest with Money Flow holding above zero. Breach of 100, however, would warn of a test of primary support at 85.
If another, most likely AAPL or GOOGL, breaks primary support then the needle would swing into bear market territory.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.