BTIG Chief Technical Strategist Katie Stockton talks about the market headwinds, as well as why next week will carry a lot of weight for investors. Bobbi Rebell reports.
US stocks dragged down by a wave of disappointing earnings here with her take on the market case fact that she is the chief technical analyst. At BTI team right here in your city great to have you. Are you have made bearish bias about the market talk about IDs at least in a very nice relief rally ethnic data at a but now the markets that what I consider to be proving ground. The S&P 500 is that I watch Mets closely. It's run up right into it downtrend channel. That I have runs back to that the middle of last year and that downtrend channel. She is resistance around 1990 which is very close to where we are at current levels so. I expect the market to meet some resistance here but certainly the momentum has been strong today. So where do we go from here now looking towards the summer short term long term. Other flat adage you know son mango went Harrison seasonal issues as we approach Manny here. In terms sense in Atchison people's sentiment re going into AM and to the summer months but. If we do you see it failure to penetrate this 29. The initial support level on the downside could be the rapid gauge by the 200 day moving average blip that let me get back into that 1950 range so. I think it can get worse before it gets better how much a factor our earnings in all this because we have low expectations coming into earnings. In general we've been having a lot of it's the just now a lot of disappointment especially from some big names in technology like Microsoft like alphabet those stocks pretty heavily today. Right so it earnings overall I feel like has driven more heard gaps down on the charts and gas up in this season and so. I. In a loss of momentum and that's where we really need to be mindful of it so it's their reaction to earnings that I care about most as a technical strategist. And certainly so far it's been OK in terms of the major indices but Alaska and any talent and it just acts like Microsoft which GAAP patent. Use say there's a lot to watch for next week why and what should investors be watching. Rice at we test this 29. They kind of action around this level that sense an important that chart. At that it possibly have of course Mac idea that the Fed meeting and learning so a lot of potential sort of that in volatile. You know events. So what's the best place for investors to position themselves. I think added if you can take a step back and just wait and see watch the market see how it reacts to all these events. Then you're probably better off that patients might actually now in terms of sectors when you watch where the best buying opportunities these days. Certainly the energy sector acts very well and that's in part because crude oil has been such a nice rally off limits to those. So there is relative strength acting that will continue to it to be you know. Sort of a prevalent theme in the broader market also these teen materials team better that's largely driven by strength in uncle and other metals prices. So my act commodity theme is certainly and you know looking better this year. He seems to irritation and into the lakes have financials I think it's that too early to jump on board with that at some thing Nikki and I man. And if we were to see it break at any S&P 500 my guess isn't this going to be the financial sector that tries it. What you still worried about. What should investors and be more hesitant. Right as a technician I look at a lot of wrapped smasher say things like the percentage of stocks about their ten day moving averages. Things like this are quite overbought or overextended at levels that would be considered extreme. So that's what I worry most of about you know whether the market can sustain these extremes. On a positive momentum in his momentum going to remain strong accent Latin market to assist in this treaty. Lot of hesitation here. And I can't thank you so much thank you our thanks to a case acted as BT IT and backing rebel of this is writers.