TWTR Pre-Earnings & Market Recap For 7/27/2015

Today the market continued its pullback, and finished with five consecutive down days. The SPX opened lower and closed with a loss of -12.01 or -0.58% for the day. It has broken through the 2079.11 support level, the next potential level of support could be either 2056.15 or 2039.69. Once again, the number of new low has expanded and there were 489 new lows and 19 new highs in the NYSE, and the U/DVOL ratio favored the down volume with a ratio of 3.5:1.

SPX

(click on the chart to enlarge)



The NDX also finished with five consecutive down days and closed down -38.28 or -0.84%. The next possible support level remains to be 4379.75. There were 295 new lows and 18 new highs in the NASDAQ with U/DVOL ratio of almost 3:1 in favored to the down volume.

NDX



The RUT made an ‘H’ breakdown today and closed below the 1215.42 support level with a loss of -11.38 or 0.93%. The 127% Fibonacci extension on the ‘H’ pattern is 1206.94, just below the March 10, 2015 close of 1208.47. These levels could be the next potential support.

RUT



Tomorrow after the market is closed, TWTR will be reporting its earnings. The options market is pricing in a move of +/-4.72 or +/-13.6%. Based on today’s close, the projected price move will place an upper target near 39.40 and a lower target near 30.00. If TWTR get a positive response from the market on its earnings, then the 38.20 resistance level could be broken. If the market responded negatively, then there is a possibility it could drop to its all time low of 29.47.

TWTR