This week will serve Wall Street to evaluate the performance of the S&P 500, which is close to historical highs like the Nasdaq 100, indices that rebounded after the presentation of results from large technology companies. The week is presented as a balance between market uncertainty and the evaluation of corporate results since the fundamental data present a calm week.
Comment:
This week could be filled with uncertainty on Wall Street, after the surprise generated by the strong US employment data published the previous Friday, which exceeded analysts’ expectations by a wide margin. This is because investors now find themselves on uncertain ground regarding the direction of monetary policy.
In the week ahead, the key fundamental events to watch are the ISM Non-Manufacturing PMI and the Services PMI. In addition, the week includes the publication of quarterly results from prominent companies such as Eli Lilly, Walt Disney and ConocoPhillips.
These reports will not only provide a critical assessment of the performance of these companies, but will also validate expectations for the S&P 500 for the near term as it is near all-time highs.
If we look at the USA500 chart on a 4-hour time frame, we notice that the price is showing signs of exhaustion near the high zone and is approaching overbought levels again. This could alert Wall Street to the possibility of a profit-taking move that would drive the index lower.
In case of short-term profit taking, the target levels are located around the supports 4,889 and 4,847. Meanwhile, buyers could keep an eye on the psychological zone of 5,000, where the main short-term target could be established.
In a quiet week in data, attention will focus on the quarterly results to evaluate the performance of the index and decision making by traders.
Comment:
After the presentation of the quarterly results of the main technology companies, the NASDAQ 100 has experienced a rebound, approaching the maximum zone again and bringing the index closer to overbought levels.
When analyzing the 4H chart, there are signs of divergence in the MACD that could indicate that profit-taking is approaching in the short term, so we will be attentive to how the Ichimoku cloud behaves as key support.
In the event that the USATEC increases sales at the beginning of the week, the formation of a triple top could be confirmed, which would put the index in a trend change formation in the short term.
However, in a week where the presentations of quarterly results continue, it cannot be ruled out that purchases will continue, allowing the index to reach new historical highs towards the psychological resistance of 17,800, a strategic liquidity zone where sales could benefit. Therefore, traders could be attentive to the evolution of both the fundamental data and the quarterly results during the week.
#impact #employment #data #quarterly #results #Nasdaq
– 2024-05-09 05:37:29
