Two 'siren' Dow stocks could hold the key to where the market heads next

Boeing failed to turn the market on Wednesday.

The industry leader reported an earnings beat and rallied more than 1 percent, but it couldn't keep the rest of the Dow afloat.

The next Dow components to report earnings could have more influence as "siren stocks," names that wield greater control over the direction of the tape, according to Piper Jaffray's Craig Johnson and Susquehanna's Stacey Gilbert.

A semi scare?

Dow stock Intel is at a critical technical inflection point and its next move could either rally or weigh on markets, says Johnson, chief market technician at Piper Jaffray.

"Intel has already broken below its 40-week moving average, and now it's coming back to retest the uptrend support line off the '15 lows. That's going to be a critical support line," he said on CNBC's "Trading Nation" on Tuesday.

Intel is still a roughly 9 percent drop to that trendline that stretches back to the 2015 lows.

"I would think that the stock would perhaps come in further and retest that line before it starts to move higher," added Johnson.

Gilbert, market strategist at Susquehanna, says Intel's earnings call could be more influential than its report.

"Their actual numbers aren't going to be as important," Gilbert told "Trading Nation" on Tuesday. "I think the commentary around 10nm [chips] and more importantly competition is going to be incredibly important."

Gilbert says the options market implies a 5.5 to 6 percent implied move on earnings.

Intel is scheduled to report after the bell Thursday.

An Apple a day…

Apple will also likely drive market direction when it reports on Nov. 1.

"Apple, obviously being one of the largest stocks — the largest stock — in the marketplace at this point in time, hasn't broken its uptrend support line, hasn't broken below its 40-week moving average. This has kind of been the ballast, as I look at the big stocks out there in the marketplace," said Johnson.

The tech leader is the best performer on the Dow in the year to date. While the Dow has fallen 1 percent over the past three months, its shares are up 14 percent.

Other Dow stocks reporting this week include Visa and Microsoft after the bell Wednesday.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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