S&P 500 (SPX), Dow Jones (DJI), Nasdaq Composite (IXIC) Daily Technical Outlook: Big Tech Earnings Sway Wall Street Today

Key Insights

• Wall Street indices open lower, influenced by rising Treasury yields and Big Tech earnings.
• Meta Platforms (formerly Facebook) beats Q3 expectations but faces Q4 revenue guidance concerns.
• Amazon’s earnings awaited; investors keen on profit margins from expanded delivery services.
• S&P 500 displays bearish trend, with price trading below its 50-day EMA at 4313.
• NASDAQ’s pronounced downward channel reinforces the prevailing downtrend, below pivot of 12980

Quick Fundamental Outlook

Wall Street’s primary indices commenced on a downbeat note on Thursday, with significant stocks grappling under the weight of higher Treasury yields. As investors digested a slew of Big Tech earnings and varied economic figures, attention was particularly directed towards Amazon’s quarterly earnings.

Meta Platforms, previously known as Facebook, outperformed Q3 profit and revenue forecasts, with a notable pivot towards artificial intelligence. Nevertheless, concerns over its Q4 revenue guidance led to a pre-market stock dip.

The tech sector remains under scrutiny with Amazon’s earnings on the horizon, and investors are keen to discern any profit margin growth driven by its expanded same-day delivery services. U.S. stock futures mirrored this sentiment, reflecting a decline as tech earnings continue to dominate the scene.

S&P 500

The S&P 500 (SPX) has exhibited a downward shift, with its current price at 4186.78, marking a decline of 1.43% within the last 24 hours. Analyzing on a 4-hour chart timeframe, a key pivot point is noted at 4225. Resistance levels are set at 4278, followed by 4341 and 4399. Conversely, immediate support is identified at 4164, with subsequent supports at 4109 and 4057.

The Relative Strength Index (RSI) stands at 32, clearly indicating a bearish sentiment as it falls under the 30 threshold, which suggests oversold conditions. The 50-Day Exponential Moving Average (EMA) is currently valued at 4313, and with the price trading below this, it underscores a short-term bearish trend.

From the chart patterns, the SPX’s breach below the pivot point combined with the formation of a bearish engulfing candlestick pattern suggests a prevailing selling trend.

The overall trend for SPX leans bearish, especially if it remains below the $4225 mark.

NASDAQ

The NASDAQ has recently experienced a notable decline, with the current price positioned at 12821.22, marking a 2.43% decrease within the last 24 hours. Analyzing the 4-hour chart, the key pivot point stands firm at 12980.

We can identify immediate resistance at 13194, followed by 13401 and a more significant resistance at 13695. On the other hand, support levels have been mapped out at 12666, with additional supports at 12422 and 12228.

Our technical indicators spotlight the Relative Strength Index (RSI) currently at 32, underscoring a bearish sentiment as it veers towards the oversold territory. The 50-day Exponential Moving Average (EMA) is exactly at 12821, with the NASDAQ trading in alignment with this value.

From a pattern perspective, we’re observing a pronounced downward channel that’s reinforcing the current downtrend. This is further cemented by the 50 EMA, which supports this bearish trajectory. Notably, the NASDAQ’s transition below the pivot point indicates potential selling pressure.

In conclusion, the overall trend leans bearish, especially if the index remains below the 12980 mark. In the short term, we anticipate the NASDAQ to potentially challenge its immediate support levels.

Dow Jones

The Dow Jones Industrial Average (DJIA) has shown a slight decline, positioned at 32961, representing a drop of 0.30% within the past 24 hours, as analyzed on a 4-hour chart. A pivotal point for the DOW stands at 33274. The resistance levels are mapped at 33726, extending to 34150 and then 34568.

On the other side, immediate support is observed at 32893, followed by 32615 and a more robust support level at 32300. Diving into the technical indicators, the Relative Strength Index (RSI) is at 37, suggesting a bearish sentiment as it’s below the 50 threshold. Meanwhile, the 50-day Exponential Moving Average (EMA) is marked at 33875. With DOW trading below this average, it indicates a short-term bearish trend.

The chart patterns display a triple bottom pattern supporting DOW at 32,890. Additionally, a Doji candle closing just above this level signals a weakness in the selling trend. This level is anticipated to be the determinant for upcoming price actions.  The DOW’s overall trend appears bullish if it remains above the $32893 level. In the short term, it’s expected that DOW might test the resistance at 33726 in the ensuing days.

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