How The Charts Of AMZN, MSFT & INTC Will Look After Today

Here’s a snapshot of the daily chart of the 3 big market leading stocks that reported earnings tonight. While the after-hours (AH) session is far from over & will still have the pre-market session tomorrow before the market opens, these levels can change but for the most part, we’ve probably seen most of the gains for the day at this point.
Although the AH session trades are not reflected on these charts, which reflect prices as of today’s close, I’ve placed a line at the AH session highs & extended the trendlines on the rising wedges & divergences on the momentum indicators below to indicate how the charts might look if these gains hold into the regular session tomorrow.
Unless these stocks can rally substantially 10-15%+ from these AH levels in the coming weeks, the divergences that were already in place will have grown even larger, setting the stage for a much deeper correction in each of these stocks. In other words, the longer-term bearish outlook for these stocks has not only not dissipated since the mid-March highs but has actually grown larger.
INTC has rallied as high as 57.77 in the AH session so far (upper-most line). Should the stock hold or marginally build on these gains in the coming sessions the negative divergences that were in place as the March 13th highs before the stock fell 13% will have grown even larger, setting the stage for a much deeper correction should those divergences be confirmed in the coming days or week.

So far in the AH session, MSFT has failed to impress as much as INTC & AMZN but unlike those two, it doesn’t need another new high to extend the divergences that were leading up to the March 13th high as it just put in another divergent high last Thursday. The stock still has room to punch up to a marginal new high by quite a bit & keeping the divergences intact (yellow lines).

So far in the AH session, AMZN has traded as high as 1641. Should the stock hold or marginally build on these gains tomorrow and/or into the next week or so, the negative divergences that were in place at the mid-March highs before the stock fell 16%, will have expanded into a much larger divergent high, setting the stage for an even larger correction, should those divergences be confirmed via a bearish cross on the PPO.

These are only potential scenarios at this time so we’ll need to watch how these stocks, along with QQQ trade in the coming days & possibly weeks in order to either firm up or negate this scenario, depending on how the charts pan out going forward. What I can say is that the intermediate to longer-term outlook for these stocks still remains clearly bearish but with some work to be done before the case can be made for the next short entry, nor do I see any sort of objective long entry on these stocks based on where they are currently trading in the AH session.