Technical Tuesday: SPX, MSFT & BBY

Core Viewpoint - The S&P 500 has shown weakness, breaking below the 50-day moving average for the first time in 138 days, indicating potential bearish trends in the market [1][4]. S&P 500 Analysis - The S&P 500 is currently eyeing the 6550 level, which has previously acted as horizontal support [2]. - A green hammer candle suggests a recovery from intraday lows, with the index pushing back towards the 50-day moving average at approximately 6710 [3]. Microsoft Analysis - Microsoft has experienced a concerning move following its earnings announcement, breaking below both the 20-day and 50-day moving averages, indicating a potential bearish trend [5][6]. - The stock's recent gap move lower has breached the neckline of a double top formation, raising concerns among traders about a possible further decline towards the 200-day moving average around 465 [8]. - Resistance levels for Microsoft are identified at 500 and 515, with significant work needed to repair the potential breakdown [10]. Best Buy Analysis - Best Buy's stock is down about 13% year-to-date but has risen 30% from April lows, with upcoming earnings expected to influence its performance [13]. - The stock is currently testing a trend line that has held for six months, coinciding with the 200-day moving average, which could provide bullish traders with confidence [14]. - A close below the trend line or the 200-day moving average could prompt traders to exit positions quickly, while a successful test could target a 15% upside from recent highs [15]. Nvidia Impact - Nvidia's upcoming guidance is anticipated to significantly impact the broader market, particularly in the semiconductor sector, which has seen a pullback of 20-30% recently [17]. - Continued positive guidance from Nvidia regarding expansion and capital expenditure could lead to renewed strength in the market, while negative signals could indicate broader risks [18][19].