Intel Turns Bearish

Earlier, I noted that Intel’s stock looked ominous given so many stocks were making bullish post-earnings reversals. On Friday, Intel (INTC) finally gave up the rest of its impressive post-earnings gains. On a day in which the market staged a relatively impressive comeback from initial selling (the NASDAQ closed marginally UP), INTC closed on its lows with a 2% loss. The stock even cracked important support levels provided by the 50-day moving average (DMA) and 200DMA.


Intel turns bearish
Intel turns bearish

*Chart created using TeleChart:

This is a discouraging development for bulls, especially bulls on technology or semiconductors. Intel reported record earnings results two weeks ago, and the initial response sent INTC smashing upward through its former downtrend from the April highs. But the selling was relentless for the rest of that day and now the market is once again stubbornly demonstrating it remains underwhelmed with INTC’s results. This response reveals yet more evidence that the stock market is betting that INTC has hit peak performance at this point in the economic recovery.

Be careful out there!

Full disclosure: no positions

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