Apple, Amazon Face Tougher Scrutiny Reporting Earnings

NEW YORK ( TheStreet) -- Important earnings reports continue and today I profile four more Dow components, two more tech bellwethers and a high-flying retailer. Investors and traders should continue to focus on the revenue line and forward guidance.

With Apple ( AAPL) and Amazon ( AMZN) reporting after the close on Thursday, my focus is on the Nasdaq following the drubbing it received last week.

The weekly chart for the Nasdaq shifted to negative with Friday's close below its five-week modified moving average at 3072.94 with the 12x3x3 weekly slow stochastic reading declining below 80.00 to 77.78. The downside risk is to the November 2011 high at 2861.51. My annual value level is 2698 with weekly, monthly, annual and quarterly risky levels at 3125, 3210, 3232 and 3295.

The daily chart for the Nasdaq shows the damage caused by Google ( GOOG) on Thursday and Friday. Last week's high 3112.45 was set on Wednesday, and was just shy of the 21-day simple moving average at 3114.77.

On Thursday the Nasdaq fell below its 50-day SMA at 3096.76, which indicates risk to the 200-day SMA at 2969.94. My annual value level is 2698 with weekly, monthly, annual and quarterly risky levels at 3125, 3210, 3232 and 3295.

Chart Courtesy of Thomson/Reuters

At www.ValuEngine.com we show that 56.5% of all stocks are undervalued with 43.5% overvalued with 12 of 16 sectors overvalued. The five most overvalued are; construction by 16.4%, medical by 13.0%, consumer staples by 12.4%, retail-wholesale by 12.0%, finance by 11.7% and utilities by 11.5%.

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