The U.S. stock markets appear poised to extend Monday’s gains as earnings season heats up and traders look for fresh catalysts.
The NASDAQ 100 gained modestly in early Tuesday trading and is doing everything it can to break to the upside. Monday’s session was very strong and suggests that the 25,000 level will continue to act as a significant floor. The 50‑day EMA is starting to behave like a trendline, reinforcing support. With earnings season underway, many traders are watching for a knee‑jerk pullback to take advantage of lower prices.
Source: TradingView
The Dow Jones 30 is trading near the top of its recent consolidation pattern. Traders are looking for a short‑term pullback to buy, given the consistent uptrend. The 50‑day EMA provides an effective trendline, and the 48,000 level has been crucial support. A break to the upside could propel the index toward 50,000; any move beyond that level could kick off the next major leg higher. Historically the Dow tends to grind higher rather than explode, so patience is warranted.
Source: TradingView
The S&P 500 is sitting just below the critical 7,000 level. A sustained break could open the door to 7,200, though it may take some time to get there. Short‑term pullbacks remain buying opportunities, with the 50‑day EMA and the 6,800 level providing nearby support. There is little interest in shorting the index; rather, traders are looking to capitalize on volatility related to corporate earnings.
Source: TradingView
Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.