Benzinga's Premarket Prep team asked Tommy Lackey, CMT, what the next catalyst could be for big tech to push us back to all time highs.
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00:00So, Tommy, I mean, we just got through kind of the biggest week of earnings for big tech
00:05companies, you know, mixed across the board with a lot of, I think, disappointing reactions.
00:11So the earnings failed to, you know, lead us to that next breakout on the overall market
00:17to new highs.
00:19What could be the next catalyst?
00:20What could be the next thing that does bring us back to new highs and maybe reignite some
00:27positive action in the tech market?
00:29Well, and I think we already have seen a lot of it, Tore, again, I was talking with someone
00:34a few weeks ago, another show, and they were talking about the idea of tech doing nothing
00:39all last quarter.
00:41And they were pretty much lamenting that.
00:43And I'm sitting here with a monster smile on my face, like, that's awesome.
00:47I mean, we had huge runs in a lot of these tech names, especially the biggest ones.
00:52The fact that they spent three to four months moving sideways and didn't really give up
00:56a lot of ground, to me, that's a lot of underlying buying that kept them from really rolling
01:03over.
01:04Now, there are some that right now will have some precarious looks like Microsoft after
01:08their earnings, but it has not broken the major pattern down, the longer term pattern,
01:14which people are looking at as the larger head and shoulders pattern there.
01:18So that's probably one of the ugliest ones.
01:20But when you look at something like an Amazon monthly chart, like y'all had before, it just
01:24broke out of a huge base, consolidated sideways, and now it's back at, now that's the Amazon
01:29or the Microsoft one.
01:31I go to Amazon.
01:32If you don't mind flipping to Amazon, look at that monthly, it had a huge base, it broke
01:36out of that base.
01:38Now it's pretty much moved sideways other than that one little spike down there in the
01:42middle.
01:43And we're back towards the top of that range right now after a solid earnings.
01:48Like you said, lowest multiples, things like that in a long time.
01:52Does that look to you like a chart that needs to roll over or is way out of whack?
01:57And see, this is a chart that if this moves up, not only does it move consumer discretionary
02:03sector huge, especially the ETFs, which is where a lot of people pay their focus these
02:08days because it's such a heavy weighting in it.
02:10It also moves the S&P, it moves the Dow, it moves the NASDAQ.
02:15And so these are the kind of things that it just hasn't performed if you look at this
02:20monthly chart over that longer term period since 2021.
02:24Yes, we broke out, we've moved sideways for how many months is that?
02:281, 2, 3, 4, 5, 6, 7 or 8 months.
02:30And now it's back at the highs.
02:32How can I see that as bearish?