Muddy Tug of War

The ARM earnings disappointment (down 13.7%) has had a surprisingly strong effect on the Nasdaq today, considering all of the hype surrounding both Meta and Microsoft rallying sharply after earnings last evening.

As it stands now META is still up more than 11%, MSFT up nearly 4%, yet the QQQ is red as we head into Apple and Amazon earnings this evening, followed up by the jobs report tomorrow morning to kick off August. 

In analyzing the technicals for ARM META and MSFT not much had changed than anything we have previously noted here and with Members--ARM was, an overall, sideways chart of late after a prior rally. META and MSFT have both been exceptionally steep on most timeframes and may very well be blowing off as we speak. 

Thus, the main takeaway from today's price action is whether the market has simply exhausted every last eager buy into the AI/growth/Nasdaq segment. After all, META and MSFT rocking in the after hours last evening, carrying over into today, should have surely galvanized bulls for an epic squeeze today in the broad market which we now know failed to materialize. 

With the SMH sector ETF down 2.5% as we speak, it seems like a change in character for any part of tech to assign more significance to ARM than META and MSFT.