Chart of the Day - Monday, October 30, 2023

Today’s Chart of the Day was shared by Mark Ungewitter (@mark_ungewitter). One of the more bearish aspects of last week's price action was the nascent weakness in Mega-Cap stocks. Up until last week, Mega-Caps were fairly immune, but they came under pressure after a slew of earnings reports. As a result, the Nasdaq 100 ($NDX) broke the August/September lows, around $14,500. Mark points out that the first step toward a meaningful rebound is reclaiming this broken support level. If the Nasdaq can reclaim 14,500, it will qualify as a failed breakdown. As we know, failed breakdowns often lead to powerful rallies. Repairing this key level could hinge on the reaction to $AAPL's earnings on Thursday evening, as $AAPL represents 11% of the Nasdaq 100.