Earnings flashes warning, can S&P500 keep up?
“S&P500 relinquished as investors reassess prior bullish take on US economy.”
US shares struggled to secure its profits as semiconductor industry undergoes selloff due to demand concerns. Recently, Nvidia announced weaker-than-expected earnings for the second quarter, placing pressure upon other industry peers as well. Share price of rivals such as AMD and Broadcom ticked down soon after Nvidia’s report was released. On the other hand, investors are currently waiting for US inflation data to gauge the speed of Federal Reserve policy tightening.
Quick recap on S&P500
Selling pressure began to launch its attack upon bulls as it safeguards key resistance level near 4200.
S&P500 Weekly Technical Analysis
From weekly perspective, the index extended its gains substantially following prior rebound near 3663.
S&P500 Daily Technical Analysis
However, overall bullish momentum starts to diminish in daily perspective, suggesting possible pullback. Do note that the index tested the same area once during June.
Trading Idea
ORDER: SELL STOP
ENTRY: 4060
STOP LOSS: 4200
Target 1: 3900
Target 2: 3805
ZFX Analyst’s Comment
The index exerts some minor signals for a pullback as bears began to defend key resistance near 4200. In the event whereby the index closed below 200-MA line in 4 hourly charts, bears may begin to take over and head towards the downside once again.
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