S&P 500, Dow Jones and Nasdaq-100 investors focus on economic data, Walmart earnings, and Fed's response to inflation for market direction.
Walmart’s stock reached an all-time high on Monday, reflecting its strong performance and market share gains, especially against competitors like Target. The company’s focus on low prices and a mix of basic goods has contributed to its success. However, there are concerns about whether heightened expectations could impact its upcoming earnings report.
The anticipation of Walmart’s earnings report has had a muted impact on S&P 500 futures, with minimal changes observed. This caution follows a positive response to recent inflation data, which sparked gains on Wall Street. The PPI’s significant decline and CPI’s stabilization are fueling hopes that the Federal Reserve might halt interest rate hikes, potentially benefiting the broader market.
With recent inflation data suggesting a cooling trend, there’s growing optimism that the Federal Reserve may pause interest rate hikes. This sentiment, combined with a historically strong market season, suggests that the current rally could have enduring strength, offering a positive short-term outlook for the market.
The E-mini S&P 500 Index, with its current daily price at 4516.75, is trading above both its 200-day and 50-day moving averages, at 4287.84 and 4368.54 respectively. This positioning above key moving averages indicates a bullish trend in the medium to long term.
The index is currently situated between the minor support level of 4494.00 and the minor resistance level of 4562.50. Its proximity to the minor resistance suggests potential for upward movement, especially if it surpasses this threshold.
Overall, the index’s positioning relative to its moving averages and support-resistance levels suggests a bullish market sentiment, with room for further upside gains if the minor resistance level is breached.
James Hyerczyk is a U.S. based seasoned technical analyst and educator with over 40 years of experience in market analysis and trading, specializing in chart patterns and price movement. He is the author of two books on technical analysis and has a background in both futures and stock markets.