Jay Woods says the pros are bracing for a fifth of the S & P 500 to report earnings this week with a keen eye on Meta , Microsoft and Apple to dictate the next move for the market. The chief market strategist at Freedom Capital Markets says the Big Technology stocks are in a tenuous position on the charts heading into earnings. Meta reports Wednesday after the bell. The AI play gapped down after the last earnings report, so traders are watching to see if it can reclaim the long-term trend. "Watch the 200-day moving average. Every technician is wanting to see that stock get back above it. That level is $675, if it doesn't another leg down," said Woods. On Microsoft, which also reports Wednesday after the bell, and Apple, which is out after Thursday's close, Woods says "both stocks are looking very toppy." "Apple needs to maintain this $242-$245 level, stay above that," said Woods. "It's broken a long term uptrend...Not a lot of people talking about it. Watch for further weakness there." Woods believes if Meta and Microsoft can get back into uptrends, the S & P 500 will make a run at a new high this week. Both shares were higher on Monday. The benchmark is lower for the last two weeks. Wednesday's Fed decision is also on traders' radar, but the focus is on tech earnings, said Woods.
