Square Inc. $SQ fell sharply during the 5/2 session as the earnings report showed better-than-expected numbers for Q1, but provided soft guidance for Q2.Square Tumbles as Results Are Not Enough to Support Sky-High Valuations (TheStreet)As the title above suggested, the market disliked the report even though Q1 numbers beat estimates. Often, when a name like Square is in atmospheric valuation level, just beating estimates is not enough to sustain a rally. Guidance is always key, and in this case, showed us the market believes SQ is not worth above $70 a share, and should not have over $30 Billion in market cap.SQ Daily Chart(click to enlarge)Support:- Although the market is fading SQ after the earnings report, it is not necessarily a sign that SQ is turning bearish. Simply, SQ is still in a period of consolidation that started back in October. - Still, if the overall market is not contracting, we can expect SQ to find support above that December support around $50.- The first support is around $64-$65.- But let's say price continues lower. The next key support will be around $58-$60, as price will also test a rising trendline.SQ Weekly Chart(click to enlarge)