Is the S&P 500 DOWNTREND OVER?
The price is moving according to my last analysis on July 29th of the S&P 500 Futures. The market is taking a breath from last week, yesterday it closed more or less at that support area of $4100.
We still have some important earnings incoming, I stick with my point that we can use the momentum to get to $4200 or even higher. However, in order to break this DOWNTREND, we need to get above $4500 and maintain.
I'm not going to spend time talking about breaking the resistance of $4500, as I see it extremely unlikely to happen.
During the next few days, the market can decline till $3950 support, in order to get some volume and make new higher highs around $4200.
The economic environment is bearish for the stock market, unless the FED decides to decrease interest rates and start printing again, avoiding fighting inflation, destroying the currency as a result.
The scenario that I think is going to happen is that we will continue the downtrend that started in the beginning of the year 2022.
From my humble opinion, this was just one more rally in a bear market, maybe a bull trap that can last a few weeks more.
I see the market between a range of $2800-$3500 till the end of the year, unless something big happens and reverses the downtrend.
Honestly, I think they are just trying to keep the market up the longer they can, in order to sell their balance sheet at higher prices, starting from September.
This thing can reverse in every moment, or it could continue to be bullish the next trading sessions. Better wait to trade to the downside till some clear reversal appears.
Good luck with your investments.
Earnings Releases to keep an eye on:
- Marathon Petroleum (MPC), Occidental (OXY), BP (BP)
- AMD (AMD)
- Starbucks (SBUX)
- Caterpillar (CAT)
- PayPal (PYPL)
- Gilead (GILD)
- Airbnb (ABNB)
- Marriott (MAR)
- Uber (UBER)
- Electronic Arts (EA)
- Waste Connections (WCN)
- Illinois Tool Works (ITW)
- Cummins (CMI)
- IDEXX (IDXX)
We still have some important earnings incoming, I stick with my point that we can use the momentum to get to $4200 or even higher. However, in order to break this DOWNTREND, we need to get above $4500 and maintain.
I'm not going to spend time talking about breaking the resistance of $4500, as I see it extremely unlikely to happen.
During the next few days, the market can decline till $3950 support, in order to get some volume and make new higher highs around $4200.
The economic environment is bearish for the stock market, unless the FED decides to decrease interest rates and start printing again, avoiding fighting inflation, destroying the currency as a result.
The scenario that I think is going to happen is that we will continue the downtrend that started in the beginning of the year 2022.
From my humble opinion, this was just one more rally in a bear market, maybe a bull trap that can last a few weeks more.
I see the market between a range of $2800-$3500 till the end of the year, unless something big happens and reverses the downtrend.
Honestly, I think they are just trying to keep the market up the longer they can, in order to sell their balance sheet at higher prices, starting from September.
This thing can reverse in every moment, or it could continue to be bullish the next trading sessions. Better wait to trade to the downside till some clear reversal appears.
Good luck with your investments.
Earnings Releases to keep an eye on:
- Marathon Petroleum (MPC), Occidental (OXY), BP (BP)
- AMD (AMD)
- Starbucks (SBUX)
- Caterpillar (CAT)
- PayPal (PYPL)
- Gilead (GILD)
- Airbnb (ABNB)
- Marriott (MAR)
- Uber (UBER)
- Electronic Arts (EA)
- Waste Connections (WCN)
- Illinois Tool Works (ITW)
- Cummins (CMI)
- IDEXX (IDXX)
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