Looks like my fears are coming to fruition.
A few weeks ago I told you tech stocks were due for a pullback. I expected the high-flying tech sector to take a breather because:
- The Nasdaq 100 relative strength index (RSI) was at its highest point in 10 months
- Market breadth (measured by the McClellan Volume Summation Index) was at its lowest level since November 2020
- All five "mega cap" stocks report earnings this week
And unfortunately, it looks like my forecast is coming true. We got our first taste of tech earnings yesterday with Tesla Inc. (TSLA). Tesla reported revenue of $12 billion and earnings per share of $1.45. That was well ahead of consensus analyst estimates of $11.3 billion in revenue and $0.97 in earnings.
Typically when a company reports sales and earnings above...