Yesterday, the S&P 500 finished the day positive despite some pressure for most of the day. There was no catalyst for the selling other than some general risk off sentiment due to impending Nvidia earnings. The company crushed expectations and the stock surged in after-hours trading, so we can expect the market to open higher today. Moreover, we got the FOMC Meeting Minutes yesterday but as it’s always the case, they were stale and didn’t contain anything that the market didn’t already know. Today we will see the latest US Jobless Claims figures and the US PMIs which will likely be big market movers.
S&P 500 Technical Analysis – Daily Timeframe
On the daily chart, we can see that the S&P 500 bounced on the red 21 moving average and despite the recent break of the trendline, we should see the market open above it and the buyers to pile in aggressively with probably another round of FOMO after the Nvidia earnings.
S&P 500 Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see the strong buying into the close yesterday, and although the setup for the sellers looked good with a retest of the trendline and the red 21 moving average adding confluence, the market should open above the levels today. The sellers will need to wait for another break below the trendline before considering bearish positions.
S&P 500 Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see more closely the bearish setup around the 5000 level which is now invalidated. Unless the data is extremely ugly, we can expect the buyers to pile in aggressively today at the open and extend the rally into new highs.
