Market Sentiment Analysis- Week of July 19th
The markets pulled back this week especially in growth names. This feels like the summer pullback that’s we have been expecting. What’s worrisome is breakouts are not working right now. $UPWK is a great example that good cup and handle breakouts on volume could fail. Looking at the leader of this current move $NVDA reversed 9.4% for the week on higher volume. When the leader is starting to pullback then we need to be extra careful. We are starting the major earnings season this week so this will be critical to see how the reactions to the initial earnings are. $NFLX is the first large tech company to report Tuesday and it could set the tone for growth names and in our case $ROKU as they often have some correlation.