Tech at the 200-day

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The S&P 500 is trying to hold its 200-day moving average, a closely watched indicator of long-term trend.

But how about inside the index? Which companies are sitting at that elusive level? Firing up RadarScreen®, we found some interesting names — especially in the ever-active Technology sector. Our scan also focused on underliers that average at least 5,000 options contracts a day, in case you like selling credit spreads.

The biggie is Facebook (FB). The social-media juggernaut has been parked in a tight range since gapping higher on strong earnings last week. Since then, CEO Mark Zuckerberg has shifted focus to new products and services like dating and smart speakers. Is the market finally ready to put the Cambridge Analytica flap in the rearview mirror?

Alphabet (GOOGL & GOOG) is another major name. Its earnings were less-than-stellar because of rising cost pressures. But it’s still holding that key moving average. Chinese e-commerce giant Alibaba (BABA) has also climbed from its its 200-day moving average following strong revenue yesterday morning

Video games: This is an interesting subgroup because its three members have all outperformed the S&P 500 by a huge margin in the last two years. Activision Blizzard (ATVI) probed its 200-day moving average yesterday following a premature earnings release, but is climbing today. Ditto for Electronic Arts (EA), which reports on Tuesday, May 8. Take-Two Interactive (TTWO), due on May 16, is straddling the moving average today.

Two others in the technology sector potentially of interest include PayPal (PYPL) and Lam Research (LRCX). PYPL has drifted lower despite decent results on April 25 (profit and revenue beat). LRCX, a highly volatile provider of semiconductor equipment, got whacked in mid-April on fears about slowing shipments, but is also sitting at that level.

Speaking of chips, the heavy traded Market Vectors Semiconductor ETF (SMH) is also trying to hold its 200-day moving average. Now that Apple’s (AAPL) iPhone slowdown isn’t as bad as many feared, will value buyers and volatility sellers step in?

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David Russell is VP of Market Intelligence at TradeStation Group. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them appraised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.