Earlier, I noted that Intel’s stock looked ominous given so many stocks were making bullish post-earnings reversals. On Friday, Intel (INTC) finally gave up the rest of its impressivepost-earnings gains. On a day in which the market staged a relativelyimpressive comeback from initial selling (the NASDAQ closed marginallyUP), INTC closed on its lows with a 2% loss. The stock even crackedimportant support levels provided by the 50-day moving average (DMA) and 200DMA.
Intel turns bearish
*Chart created using TeleChart:
This is a discouraging development for bulls, especially bulls ontechnology or semiconductors. Intel reported record earnings results two weeks ago, and the initial response sent INTC smashing upward throughits former downtrend from the April highs. But the selling wasrelentless for the rest of that day and now the market is once againstubbornly demonstrating it remains underwhelmed with INTC’s results.This response reveals yet more evidence that the stock market is betting that INTC has hit peak performance at this point in the economicrecovery.
Be careful out there!
Full disclosure: no positions