Stock Markets mid-week Trending update
Here is how the trending heat map looks like for the major markets.
The S&P 500 did turn short-term bullish over the last 2 days of trading.
The Dow Jones price crossed over its 50-day moving average.
The NASDAQ and NASDAQ 100 pricing continues to stay over their 10-day and 20-day moving averages.
The Russell 2000 continues to remain short-term bullish.
The Emerging Markets retreated with the price crossing below the 10-day and the 20-day moving averages.
The All-Country World Index moved in the right direction and turned short-term bullish.
Here is a 3-month chart of the S&P 500.
We can see that the S&P 500 has had 3 big up days. During this move it has broken above a resistance level and also broken above the trendline touching 2 previous short-term highs. It is sitting at 3859 with the next resistance at 3917 (+1.5% from current) and support at 3825 (-0.89% from current).
This week is Big Tech earnings as well which may have an influence in the next move in the markets. Big Tech collectively has a large influence on the S&P 500. As I write this note, both Microsoft and Google are trading down -6% after earnings in extended hours. So, the S&P 500 will likely open lower today morning when regular trading starts. The pre-markets at 8:45am is suggesting that the S&P500 will first test its support level of 3825 before anything else.
On a trade note, I am looking to take a position in XLE as I see that still the strongest sector. It is also not fully correlated to the S&P 500. So, not knowing which direction S&P 500 will go (although signs point to the upside the Big Tech earnings could be a headwind) I feel the XLE gives me a better risk/reward.