Hello everyone, as we all know the market action discounts everything :)
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The S&P 500 finished at all-time highs on Monday, as earnings season kicked into high gear in one of the strongest reporting weeks of the quarter, with leading indicators in many industries set to report results.
The S&P 500 gained 21.58 points, or 0.47%, to 4,566.48.
After a setback and a huge drop that happened 2 weeks ago with the cause being the big problems that happened in China with Evergrande, The S&P is back on track now, and it's breaking new highs each week
Possible Scenarios for the market :
Scenario 1 :
The S&P has been having a great Bullish movement that will probably lead the market price even further soon, we will be seeing the market reaching the first resistance located at 4587.76 where we might have a small setback but most likely the S&P will breakout and continue pushing reaching the 4701.56 level soon.
Scenario 2 :
After reaching the first resistance at 4587.76 we could be seeing a small pullback that will drive the price down near the support zone located at 4473.96 where the Bulls will try to snap back control over the market and push the price back into Scenario 1.
Technical indicators show :
1) The market is above the 5 10 20 50 100 and 200 MA and EMA (Strong Bullish sign)
2) The MACD is above the 0 line indicating a Bullish market with a positive crossover between the MACD line and the Signal line.
3) The ADX is at 22.05 showing that the market is trending with a positive crossover between DI+ and DI-.
Weekly Support & Resistance points :
support Resistance
1) 4473.96 1) 4587.76
2) 4403.03 2) 4630.63
3) 4360.16 3) 4701.56
Fundamental point of view :
U.S. President Joe Biden on Monday held out hope for an agreement on his major spending plans before attending a climate summit in Scotland, while the White House said Democratic negotiators were closing in on a deal.
The majority of the 11 major S&P sectors advanced, with energy and consumer discretionary shares the best performing, as energy names received a boost from another rise in oil prices to multiyear highs on tight supply.
This week, 165 components of the S&P 500 are expected to post quarterly results, according to Refinitiv data. Analysts expect earnings at S&P 500 companies to grow 34.8% year-on-year for the third quarter.
Investors are also assessing how companies are navigating supply-chain bottlenecks, labor shortages and inflationary pressures to sustain growth. Of the 119 companies in the S&P 500 that have reported earnings through Monday morning, 83.2% have topped analysts' expectations. According to Reuters
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
_________________________________Make sure to Like and Follow if you like the idea_________________________________
The S&P 500 finished at all-time highs on Monday, as earnings season kicked into high gear in one of the strongest reporting weeks of the quarter, with leading indicators in many industries set to report results.
The S&P 500 gained 21.58 points, or 0.47%, to 4,566.48.
After a setback and a huge drop that happened 2 weeks ago with the cause being the big problems that happened in China with Evergrande, The S&P is back on track now, and it's breaking new highs each week
Possible Scenarios for the market :
Scenario 1 :
The S&P has been having a great Bullish movement that will probably lead the market price even further soon, we will be seeing the market reaching the first resistance located at 4587.76 where we might have a small setback but most likely the S&P will breakout and continue pushing reaching the 4701.56 level soon.
Scenario 2 :
After reaching the first resistance at 4587.76 we could be seeing a small pullback that will drive the price down near the support zone located at 4473.96 where the Bulls will try to snap back control over the market and push the price back into Scenario 1.
Technical indicators show :
1) The market is above the 5 10 20 50 100 and 200 MA and EMA (Strong Bullish sign)
2) The MACD is above the 0 line indicating a Bullish market with a positive crossover between the MACD line and the Signal line.
3) The ADX is at 22.05 showing that the market is trending with a positive crossover between DI+ and DI-.
Weekly Support & Resistance points :
support Resistance
1) 4473.96 1) 4587.76
2) 4403.03 2) 4630.63
3) 4360.16 3) 4701.56
Fundamental point of view :
U.S. President Joe Biden on Monday held out hope for an agreement on his major spending plans before attending a climate summit in Scotland, while the White House said Democratic negotiators were closing in on a deal.
The majority of the 11 major S&P sectors advanced, with energy and consumer discretionary shares the best performing, as energy names received a boost from another rise in oil prices to multiyear highs on tight supply.
This week, 165 components of the S&P 500 are expected to post quarterly results, according to Refinitiv data. Analysts expect earnings at S&P 500 companies to grow 34.8% year-on-year for the third quarter.
Investors are also assessing how companies are navigating supply-chain bottlenecks, labor shortages and inflationary pressures to sustain growth. Of the 119 companies in the S&P 500 that have reported earnings through Monday morning, 83.2% have topped analysts' expectations. According to Reuters
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.