It’s a solid session, although indices well off the highs and at session lows. All eyes are on mega cap names reporting after the close.

Microsoft (MSFT) has posted results that have beaten consensus, but recently, there was a big hit to expectations.

Reaction to earnings has been mixed. The last time, shares dropped on the day of the report and were lower a week later.

Alphabet (GOOG/L) has also seen earnings estimates come down in the past week.

   But the stock has reacted nicely to back-to-back beats after a string of earnings misses.

Last week, large cap Tech was the biggest decliner among different sizes and styles.

Meanwhile, hedge funds were not only big sellers (largest in six months), but they also added to their short position for the 11^th straight week.

Last week’s long selling in Tech was the largest in 6+ months.

This is a moment of truth.  Big beats and upside guidance might trigger a major short squeeze, but misses could see key support levels.