Since Sunday ... ES has followed suit pretty well. Slight dip below the 3255 Support but rose above and tap the upper level 3290 as suspected effectively closing the gap from Monday's gap down.
Also, we predicted early that the closing of the gap was likely. Notice the 4hr chart momentum on the MACD shifted as suggested and is now curving down which may indicate some flat movement along the 3290 resistance over night. May breach due to Apple announcements.
What to look for:
APPL price popped up nicely after hour as a result of their positive earnings and revenue release. Sales of iPhone, peripherals and subscription services are all trending positive. I expect APPL to have a major move up when the market opens depict the price already being near ATHs. We will have to wait and see if the price action can sustain a move above previous ATHs of $323.33. Either way, Expect ES and SPY to make its move above current resistance edging closer to new highs are a result of Apple.
FB is scheduled to release earning post market close on WED. Whispers suggest the company will exceed earnings expectations by 5+ percent for the quarter. However I have seen mix messages on projection for FB revenue. That being considered, it's unclear how FB will move and move the market tomorrow.
I will be closing my position tomorrow after the expected rally from Apple and watching for the broad market's reaction to the pre and post Facebook announcement.
Thursday Amazon earnings follow with expectations of exceeding earnings by 4%. Lots of positive news ... Barron projects revenue to be up 11 to 20%.
Bottom Line:
There is positive APPL news followed by mediocre FB news followed by positive AMAZ news. Upward price movement- Lateral Price movement - Upward price movement to close the week.
@ChrisLan, FB earnings may be good but revenue is mediocre. Not sure how institutional investors will view that.
MSFT also post earnings tomorrow... i would lean there
"Facebook Inc.’s stock slid 7% in after-hours trading Wednesday after the company reported fourth-quarter results that topped estimates but didn’t seem to sate lofty Wall Street expectations." - MarketWatch . com
ChrisLan
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@cblewis_78, bro you’re a genius. It’s insane. How are a trading god
Question: what are we waiting FB for?