×

One Week In, Earnings Season Already Lost?

It’s the first heavy week of earnings season with nearly half of the Dow Jones Industrial Average and more than one-fifth of the S&P 500 set to report. Investors may have already seen enough.

The S&P 500 failed to break through key resistance at 1100 as earnings season began last week with the likes of Alcoa , General Electric, Intel and Bank of America reporting. While just 22 members of the index provided results, a broad enough mix from each sector was represented for investors to get a bad feeling about what’s coming next.

Mary Ann Bartels, Bank of America Merrill Lynch’s technical research analyst, points out that last Tuesday, 90 percent of the S&P 500 members increased on volume of 4.9 billion shares. However, on Friday, 90 percent of the index declined with activity at 5.5 billion shares.

“Last week’s 90 percent up day failed to clear the 1100 area resistance and Friday’s 90 percent down day has the potential to solidify that area as short-term resistance,” wrote Bartels, one of the few chart analysts left at a major bank because of her wide following. “Higher average volume for 90 percent down days supports the bearish case.”

Technical analysts look at extreme behavior in price movements and volume to gauge sentiment. Many such analysts have left the big firms to sell their research at smaller shops.

Halliburton kicked this week off on the right foot as the shares jumped after revenues exceeded analysts estimates. The companies left to report this week are not faring as well.

Apple shares continue to be under pressure ahead of its report Tuesday. When Apple, literally the most loved company on Wall Street by analysts, can’t get momentum going before earnings, there may be little hope for the market to do so.

“The S&P 500 ran into some trouble at the 1100 area, which corresponded with its downward-slopping 200-day moving average,” wrote John Roque, analyst at WJB Capital Group. Chart analysts look at long-term averages to measure trends.

The failure to break out during earnings may not even be in the companies’ hands. Both Bartels and Roque cited the breakdown in the 10-year Treasury yield below 3 percent as a sign that investors are fearful of a domestic economic slowdown, whether companies are forecasting it or not.

For the best market insight, catch 'Fast Money' each night at 5pm ET, and the ‘Halftime Report’ each afternoon at 12:30 ET on CNBC.

______________________________________________________
Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! If you'd prefer to make a comment but not have it published on our website send your message to fastmoney@cnbc.com.

Trader disclosure: On July 19, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova owns (C), (MRVL), (EMC), (ADI), (ADBE), (SWN), (ABT), (CVS); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Scaramucci owns (AAPL), (BAC), (DIS), (GS); Kelly owns (BP) puts; Kelly is short (GS); Pete Najarian owns (AAPL) call spreads; Finerman’s firm owns (BAC); Finerman owns (BAC) & (BAC) preferred; Finerman owns (BP) calls; Finerman’s firm owns (IBM); Finerman’s firm owns (JPM); Finerman owns (JPM); Finerman owns (RIG)

For Joe Terranova
Terranova works for (VRTS)
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners owns more than 1% of (CASS)
Virtus Investment Partners owns more than 1% of (LDR)
Virtus Investment Partners owns more than 1% of (LPHI)
Virtus Investment Partners owns more than 1% of (MGRC)
Virtus Investment Partners owns more than 1% of (XLB)
Virtus Investment Partners owns more than 1% of (XLP)
Virtus Investment Partners owns more than 1% of (XLY)
Virtus Investment Partners owns more than 1% of (XLI)
Virtus Investment Partners owns more than 1% of (XLK)
Virtus Investment Partners owns more than 1% of (XLU)
Virtus Investment Partners owns more than 1% of (SUBK)
Virtus Investment Partners owns more than 1% of (WDFC)
Virtus Investment Partners owns more than 1% of (YDNT)
Virtus Investment Partners owns more than 1% of (DRYS)

For Anthony Scaramucci
SkyBridge Capital owns (AAPL)
SkyBridge Capital owns (BAC)
SkyBridge Capital owns (DIS)
SkyBridge Capital owns (GS)

For Brian Kelly
Accounts managed by Kanundrum Capital own (TLT)
Accounts managed by Kanundrum Capital own (AUY)
Accounts managed by Kanundrum Capital own (GFI)
Accounts managed by Kanundrum Capital own (C)
Accounts managed by Kanundrum Capital own (GME)
Accounts managed by Kanundrum Capital own (BIG)
Accounts managed by Kanundrum Capital own (NWL)
Accounts managed by Kanundrum Capital own Japanese Yen
Accounts managed by Kanundrum Capital are short (BA)
Accounts managed by Kanundrum Capital are short (USO)
Accounts managed by Kanundrum Capital are short (GLD)
Accounts managed by Kanundrum Capital are short Aussie Dollar
Accounts managed by Kanundrum Capital are short (AMZN)
Accounts managed by Kanundrum Capital are short (KMX)
Accounts managed by Kanundrum Capital are short (FXI)
Accounts managed by Kanundrum Capital are short (EWO)
Accounts managed by Kanundrum Capital are short (EWI)
Accounts managed by Kanundrum Capital are short (JOE)
Accounts managed by Kanundrum Capital are short (RSX)
Accounts managed by Kanundrum Capital are short (SLX)
Accounts managed by Kanundrum Capital are short (CSX)
Accounts managed by Kanundrum Capital are short (FCX)

Dennis Gartman
Funds managed by Gartman are short the Euro
Funds managed by Gartman own the Canadian Dollar
Funds managed by Gartman own Gold
Funds managed by Gartman own (AAPL)

Mark Mahaney
Employees Of Citi Own (GOOG), (YHOO)
Citigroup Global Markets Or Affiliates Own 1% Or More Of (YHOO), (EBAY), (NFLX), (AKAM) Citigroup Global markets Or Affiliates Has Acted As Manager Or Co-Manager Of An Offering Of (PCLN) In Past 12 Months Citigroup Global Marekts Or Affiliates Has Received Investment Banking Compensation For Services Provided In Past 12 Months From (PCLN) Citigorup Global Markets Or Affiliate Received Non-Investment Banking Compensation From (YHOO), (GOOG), (AMZN), (EBAY), (EXPE), (WBMD) In Past 12 Months
(PCLN) Is Or In Past 12 Months Was An Investment Banking Client Of Citigroup Global Markets (YHOO), (GOOG), (AMZN), (EBAY), (EXPE), (WBMD) Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment Banking Non-Securities Related Services) Citigroup Global Markets Is A Market Maker In (YHOO), (GOOG), (AMZN), (EBAY), (NFLX), (AKAM), (PCLN), (EXPE), OpenTable, VistaPrint, (NILE), (WBMD) Citigroup Global Markets And/Or Affiliates Has A Significant Financial Interest In Relation To (YHOO), (GOOG), (AMZN), (EBAY) Citigroup Global Markets Or Affiliates Owns 5% Or More Of (YHOO)

For Victor Sperandeo
Vic Sperandeo Owns Gold

For Mike Khouw
Cantor Fitzgerald makes a market in (DE)
Cantor Fitzgerald makes a market in (JOYG)

For Carter Worth
Oppenheimer & Co. Is A Market Maker In (AAPL)