Current Dynamics
The main index of the American economy, the S&P 500, is currently correcting around the level of 5643.0, driven by positive expectations from the quarterly reports of component companies and a correction in the bond market.
Among the highlighted companies, UnitedHealth Group (NYSE:UNH), a leader in the U.S. insurance sector, may report revenue of $98.72 billion, surpassing last year's $92.9 billion, with an estimated earnings per share of $6.67, up from the previous $6.14.
Bank of America Corp (NYSE:BAC)., on the other hand, is expected to report revenue of $25.24 billion, slightly above last year's $25.2 billion, but with an earnings per share of $0.7971, down from the previous year's $0.8800.
Morgan Stanley (NYSE:MS) expects to report revenue of $14.32 billion, surpassing the $13.50 billion of the second quarter of 2023, with estimated earnings per share of $1.65, compared to $1.24 for the previous period.
The bond market situation also favors the upward dynamics of the S&P 500: the three-month bond rate fell from 5.230% to 5.195%, and the six-month bonds were placed at a rate of 4.985%, down from the previous 5.080%.
Stock Performance
Growth Leaders:
Axon Enterprise (NASDAQ:AXON) Inc. (+5.46%)
Paycom Software (NYSE:PAYC) (+5.17%)
APA Corp. (+4.97%)
Capital One Financial Corp (NYSE:COF). (+4.48%)
Decline Leaders:
The AES Corp (NYSE:AES). (–10.03%)
First Solar Inc (NASDAQ:FSLR). (–8.50%)
CenterPoint Energy Inc (NYSE:CNP). (–5.67%)
Support and Resistance Levels
On the daily chart, the index is moving towards the resistance line of an ascending channel with limits between 5800.0 and 5640.0.
Technical indicators show an unstable buy signal: the fast EMAs on the "Alligator" indicator are above the signal line, and the AO histogram is forming corrective bars in the buy area.
Support Levels: 5580.0, 5325.0
Resistance Levels: 5670.0, 5895.0
Trading Scenarios
Buy Positions: If the price fixes above the resistance level at 5670.0, open buy positions with a target at 5800.0. Place a Stop Loss order at 5640.0. Execution time: 7 days or more.
Sell Positions: If the price falls and fixes below the support level at 5580.0, open sell positions with a target at 5325.0. Place a Stop Loss order at 5620.0.
Paying attention to the quarterly reports of companies and changes in the bond market will be crucial to adjusting your trading strategies according to the dynamics of the S&P 500.