EB Daily Market Report - Brief Update - Wednesday, April 22, 2026
Greetings from Myrtle Beach, SC!
There's not really a whole lot to report as not much has changed technically. The big news, of course, is that the U.S. and Iran extended their ceasefire agreement. However, that hasn't freed up the Strait of Hormuz as ship traffic there remains at a standstill. Crude oil prices ($WTIC, +3.83%) are back above $93 per barrel, but trading on the major indices hasn't felt much of an impact.
At around noon today, the NASDAQ 100 ($NDX) was up more than 1.3%, while the S&P 500 had gained over 0.8%. Technology (XLK, +1.67%) is again showing both absolute and relative strength, and energy (XLE, +0.93%) is performing well also. Real estate (XLRE, -0.46%) and industrials (XLI, -0.40%) lag.
Earnings continue to accelerate and results are mostly strong, though reactions are mixed. Over the past two days, 65 companies have reported better-than-expected earnings, while only 22 have come up short. That bodes well for equity prices in the days and weeks ahead, with the Middle East volatility remaining the the big wild card. Yesterday, the NASDAQ 100 lost nearly 1% in 15 minutes, before buyers stepped up into the close. I could definitely see an environment where short-term swings could be nauseating. I'll continue to focus on the rising 20-day EMA as key short-term support.
General Electric (GE, -4.93%) is a perfect example of a very nice earnings report met with a not-so-great market reaction. Both quarterly revenues and quarterly earnings beat estimates by a mile, yet the stock is trading off 5%. Industrials, in particular, could be vulnerable as that group had a stellar run over the past several months and seasonality is not favorable for the group as we look forward.
Software stocks ($DJUSSW), which tend to struggle a bit from December through March, have a history of performing much better over the next few months. Technically, this group has been on a roll and is trading above both its 20-day EMA and 50-day SMA. I expect further strength ahead, with potential 20-day EMA tests along the way.
Happy trading!
Tom