Amazon was the latest tech heavy weight to report excellent earnings, yet it failed to meet the high expectations of market watchers, explains Ian Murphy of MurphyTrading.com.
There is a feeling in the market that the relentless pressure to perform being placed on a handful of firms is starting to take a toll.
Tech heavy weights have carried this market for too long and their oversize weighting on the S&P 500 (SPX) is a double-edged sword. The six tickers under which Apple, Microsoft, Amazon, Facebook, and Google trade represent just 1.18% of constituents in the S&P 500 but carry almost 23% of the weight of this widely referenced index.
At 08:00 ET, Amazon (AMZN) was down 6.8% in pre-market trade, pulling Micro E-Minis of the Nasdaq 100 and S&P 500 Index with it.
As the last day in the trading month, increased volatility can be expected today as institutional and professional traders prepare to take the month of August off – exercise caution and confirm protective stops are in place.
Learn more about Ian Murphy at MurphyTrading.com.
