Advertisement
Advertisement

S&P 500; US Indexes Fundamental Forecast – April 26, 2017

By:
James Hyerczyk
Published: Apr 26, 2017, 10:42 UTC

The early price action suggests investors should get ready for a choppy opening on Wednesday. There was no major news overnight and the situation in North

S&P 500; US Indexes Fundamental Forecast – April 26, 2017

The early price action suggests investors should get ready for a choppy opening on Wednesday. There was no major news overnight and the situation in North Korea appears to be easing due to diplomatic activity, but we still didn’t any evidence of solid “risk-on’ buying like we’ve seen going into the regular session openings since Sunday.

There are no major economic events scheduled today, but all eyes will be on the release of the much-anticipated tax plan from the White House. U.S. President Donald Trump is expected to reveal what he has described as a “massive” tax plan on Wednesday.

S&P 500 Index
Daily June E-mini S&P 500 Index

Some investors are saying the tax plan and the news that Congress appeared on track to release its budget in time to avoid a government shutdown this week-end were two key reasons for the market’s jump on Tuesday. Another reason was the slew of outstanding earnings reports.

We could see a similar rally today if traders respond similarly to reports from corporate giants Boeing, Daimler, Fiat Chrysler, GlaxoSmithKline, PepsiCo, Procter and Gamble and United Technologies. All are scheduled to report before the opening.

After the market closes, we’ll hear from Amgen, PayPal, F5 Networks and Tractor Supply.

 

Dow Jones Industrial Average
Daily June E-mini Dow Jones Industrial Average

Shortly before the opening, European indexes were trading flat. Asia was up, but their markets were catching up to the strong rally in the U.S. markets on Tuesday.

After an initial reaction to the earlier earnings reports, the major indexes could settle into a range until the tax plan is released. We could see a two-sided reaction to the news. In my opinion, the news has already been baked into the market so unless there is a major surprise, we could be set up for a “buy the rumor, sell the fact” situation.

S&P 500 Index traders especially should keep an eye on this week’s inventories report from the U.S. Energy Information Administration, due to be released at 1030 GMT. A bearish report could drive down the Energy Sector component of the index. This could limit gains in the overall index.

Any surprises today will come from a disappointing tax plan, new problems with raising the debt ceiling and renewed hostilities with North Korea.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

Did you find this article useful?

Advertisement