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U.S. markets opened to mixed results with the Dow and S&P finishing in the green, while the Nasdaq lowered. As big tech earnings season gets closer, investors are eagerly waiting to see how companies like Microsoft, Alphabet, Meta Platforms, and Amazon.com perform. This week is critical, and the market will closely watch these companies’ earnings reports for indications regarding the overall health of the economy.
The week started with Coca-Cola beating expectations for earnings and revenue in the first quarter, but its stock dropped about 0.3%. The bigger test for markets will be the results from tech stalwarts such as Alphabet and Microsoft, which are due after the market closes on Tuesday. These will be followed by those of Meta Platforms on Wednesday and Amazon.com on Thursday. The reports to monitor this week also include 3M, GE, GM, McDonald’s, PepsiCo, Visa, Boeing, Cloudflare, and Comcast.
In addition to the earnings reports, GDP data is due on Thursday, while key PCE data will be released on Friday. Investors will be keeping a close eye on these reports for indications of how the economy is performing and where it may be headed. The market has been volatile in recent weeks, and investors are looking for any sign that could help them determine the direction of the market in the coming weeks.
As we look over current market conditions, we see that the $VIX is trading near the $17 level. The earnings of $MSFT, $GOOGL, and $GE this week, as well as GDP data, can influence the next move in the market. We are watching for the overhead resistance levels in the SPY, which are presently at $414 and then $418. The support for the $SPY is at $406 and then $402. We expect the market to trade sideways for the next two to eight weeks. We would be market neutral at this time and encourage subscribers to hedge their positions. Globally, Asian markets finished with mixed results while European markets closed in the red. Market commentary readers should maintain clearly defined stop levels for all positions. For reference, the SPY Seasonal Chart is shown below:
Note: The Vector column calculates the change of the Forecasted Average Price for the next trading session relative to the average of actual prices for the last trading session. The column shows the expected average price movement “Up or Down”, in percent. Trend traders should trade along the predicted direction of the Vector. The higher the value of the Vector the higher its momentum.
*Please note: At the time of publication Vlad Karpel does have a position in the featured symbol, SLV. Our featured symbol is part of your free subscription service. It is not included in any paid Tradespoon subscription service. Vlad Karpel only trades his money in paid subscription services. If you are a paid subscriber, please review your Premium Member Picks, ActiveTrader, or MonthlyTrader recommendations. If you are interested in receiving Vlad’s picks, please click here.
West Texas Intermediate for Crude Oil delivery (CL.1) is priced at $78.67 per barrel, up 1.03%, at the time of publication.
Looking at USO, a crude oil tracker, our 10-day prediction model shows mixed signals. The fund is trading at $68.21 at the time of publication. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The price for the Gold Continuous Contract (GC00) is up 0.441% at $1999.30 at the time of publication.
Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows mixed signals. The gold proxy is trading at $184.25 at the time of publication. Vector signals show -0.34% for today. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The yield on the 10-year Treasury note is down at 3.496% at the time of publication.
The yield on the 30-year Treasury note is down at 3.711% at the time of publication.
Using the iShares 20+ Year Treasury Bond ETF (TLT) as a proxy for bond prices in our Stock Forecast Tool, we see mixed signals in our 10-day prediction window. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The CBOE Volatility Index (^VIX) is $16.89 at the time of publication, and our 10-day prediction window shows mixed signals. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
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