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Next Day Prep #202: S&P 500 Breaches 50-Day MA In Negative Territory – Thursday 2/5/2026

By WaveRider AI1 min read

Key takeaways

  • Stay nimble in the volatile market. Focus on hardware and select industrials over software stocks and watch for high relative volume for potential trades.

Next Day Prep: S&P 500 Breaches 50-Day MA In Negative Territory

A quick analysis of today’s market outlook and key trading opportunities to start your day.

Intro & Market Mood

Market mood: Today’s market saw significant losses across major indices, with the S&P 500, Nasdaq, and Russell 2000 all in the red. Notable technical breach as S&P 500 closed below its 50-day moving average, leading to negative territory for the year.

Overnight Headlines

  • Alphabet (GOOGL): Despite beating earnings estimates, announced a significant capital expenditure plan for fiscal year ’26, causing stock volatility.
  • Tech Sector: Anchor dragging the market down, with notable declines in Amazon (AMZN), Tesla (TSLA), and Microsoft (MSFT).
  • Crypto Space: Bitcoin’s sharp drop impacting related equities, with Coinbase (COIN) and Robinhood (HOOD) hit hard.

Economic Announcements

No specific economic announcements mentioned in today’s briefing.

Earnings Highlights

  • Hershey (HSY): Standout performer, up 9% after beat-and-raise quarter.
  • Cummins (CMI): Despite positive earnings, stock dropped due to cautious guidance causing market punishment.

Top Movers

Stocks: ARW (Arrow Electronics), MOD (Modine Manufacturing), TXN (Texas Instruments) showing strength amid market turmoil.

Quick Trade Ideas

  • ARW: Momentum ignition setup, looking for pullback to 141-142 level to go long targeting 148.
  • MOD: Continuation look, potential push toward 210 if holds above 205.30.
  • TXN: Defending higher lows, a solid semi-leadership play if clears 225.85.