Many results are expected to be released this week, including Alphabet, Meta Platforms, Tesla, Intel. Below is a list of the main wins scheduled for the calendar:
Key wins this week:
- Tuesday: After closing: Tesla, Visa, Texas Instruments
- Wednesday: Boeing, AT&T, General Dynamics, Boston Scientific. After the close: Meta Platforms, IBM, Ford, Chipotle, ServiceNow, Lamb Research
- Thursday: American Airlines, Caterpillar, Southwest, Bristol-Myers Squibb. After shutting down Microsoft, Alphabet, Intel, Western Digital, T-Mobile, Gilead.
- Friday: Exxon Mobil, Chevron, Colgate-Palmolive.
Today, stocks are up for the second day in a row, helped by falling yields amid a softer, less inflationary economy. S&P’s global manufacturing and services data came in below expectations. Manufacturing data from the Richmond Fed was also weak/contracting. Yields are lower, with the 5-year rate down about -3.7 basis points and the 10-year rate down -3.3 basis points.
The combination causes stocks to rise for the second day in a row. The S&P index is up 1.01%. The NASDAQ is up 1.44%.
The S&P index rises for the second day in a row
Technically, looking at the daily chart of the S&P Index above, it fell below the 50% midpoint of the 2024 trading range on Friday, at 4973.48. Friday’s price closed below this level at 4953.56 (Barash), but fell below the 100-day moving average (blue line on chart above) currently at 4944.56.
Yesterday, the price rebounded, easing some of the downward pressure. The price hit a daily low at 4969.40 before rebounding and closing above the 50% retracement level at 5010.59.
Today, the momentum continued with the price moving back above the broken 38.2% retracement at 5042.24. This level now poses a near risk for buyers looking for additional upside potential. On the higher side, the 50-day moving average stands at 5119.28 and is the next upside target. The price is still far from this level with a high price today at just 5068.82.
Looking at the NASDAQ and daily chart below, its lowest price fell below its 100-day moving average last week. This was the first time since November 10 (see blue line at 15515.03). The price also fell below the 61.8% line of the 2024 trading range at 15,264.98.
Yesterday, the price bottomed near this retracement level before moving higher. Today, the price surpassed its 50% midpoint of the 2024 trading range at 15,508.22, as well as the 100-day moving average of 15,515.01.
The return above these two key technical levels has shifted the short-term bias to the upside. Traders looking for additional upside potential would no longer want to see the price move back below each of these technical levels (down to 15,508.22). The next moment of upside will take place at the broken level of 38.2 at 15,751.45. Above that is the 50-day moving average at 16,055.26.
Needless to say, this week’s earnings will be key for both of these broader indexes. Buyers are trying to take this control at least in the short term, but they will need technical support to continue exploring the bullish outlook.
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