After a full week of small technical victories for bulls, fresh worries surrounding Spain caused the market to gap heavily to the downside and struggle thereafter. The S&P 500 is back within its wedge and the NASDAQ surprisingly enough is now below its key channel trendline support.
When it comes to earnings season, Apple (AAPL) is the focal point for the week. The stock is set to report tomorrow after the bell with options pricing in about a 5.5 percent move in the shares in either direction after earnings, so we should expect a gap one way or another. Another tech notable is Amazon (AMZN), set to report Thursday after the close.
Thomson Reuters cites that thus far, two-thirds of S&P 500 companies reporting Q2 results have exceeded low-ball earnings forecasts. However, less than half (43%) have met or topped sales estimates.
Beyond earnings and any other Europe drama, the Q2 GDP number is due out Friday which is expected to come in at 1.2%, hardly anything to cheer over. Mark from MarketMontage put it best today when it came to describing the current market (emphasis mine),
It remains a very difficult market since early April and we're currently stuck in a pattern of 4-7 day rallies with 4-7 day selloff in the U.S. since mid June. Both directions are extremely strong, with much of the action coming overnight. We've had a serious headfake now to the upside in the past few sessions, and a break below the 1325 level would create a "lower low" and a serious change in the near term setup in this market.
Updated indices below. Stay frosty out there and I will see you tomorrow.