Charting the Markets: Nasdaq in the Spotlight as Big Week Unfolds for Mag 7
Several key names will report earnings results and we'll be watching carefully for investors' response.
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With the Nasdaq 100 QQQ up handsomely the last few months, more than 40%, it makes sense to analyze the index to see if there is more upside to be had. No question the QQQ had been severely damaged in April but has rehabilitated nicely since that bottom formed and is now the undisputed leader.
For 2025 the QQQ is higher by 10.8%, a robust gain following up huge numbers in 2023/24. Led by the Magnificent Seven stocks, the Nasdaq is pulling the rest of the market up with it, kicking and screaming.
The Nasdaq 100 has four of the Magnificent Seven names reporting this week — and all four (Meta META, Microsoft MSFT, Apple AAPL and Amazon AMZN) are in TheStreet Pro Portfolio.
How will the markets respond post earnings? Will it be more like Tesla TSLA, which investors soured on, or more like Alphabet GOOGL, which managed to eke out a nice gain this past week? The last earnings period had the stock market mired in a slump and these stocks did not perform well (save for Meta). Currently, the situation has flip flopped to being an uber-bullish market.
The technical picture sure looks bullish with stochastics overbought and embedded, MACD (moving average convergence/divergence) on a buy signal, and the parabolic SAR (stop and reverse) still in bullish territory. Candles are blue, which is a bullish signal on the GoNoGo composite of indicators. We certainly must defer to the trend and give the bulls the benefit of the doubt.
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At the time of publication, TheStreet Pro Portfolio was long META, MSFT, AAPL, AMZN and GOOGL.
