Good morning Traders!
Last week we heard of further layoffs in some big tech companies, igniting further
investor’s fears of a recession.
Amazon has announce it will layoff 18,000 employees, a far bigger number then first
planned and the most it ever has.
The Monthly chart is in a strong downtrend, and after another move to a Lower Low, the
market has touched it’s support level around the round number of 80, which is also March
2020 lows. The overall trend on the Weekly chart is also a downtrend and currently the
Daily chart is showing consolidation above this level. I’ll be watching for potential moves
in reaction to this level.
Salesforce announced that it too will join the layoff round to the tune of about 8000
employees, stating that they have previously hired too many people.
Here too, the Monthly chart is showing a strong downtrend, and so is the weekly chart.
But unlike Amazon, the market is currently trading above it’s March 2020 lows (which is
around the 115 area). The Daily chart had a deeper pullback, printing a Higher High, thus
breaking the downtrend on this timeframe. I’ll be looking for signs that the pullback may
be over and that the market is ready to continue in it’s overall direction.