Weekly Stock Market Update & SPY Technical Analysis
It’s a shortened holiday week in the market, but it’s jam-packed with exciting events and data. The biggest focus this week will be Nvidia’s earnings, scheduled for Wednesday after the market closes. Nvidia is currently the second-largest company in the stock market by market cap ($3.2T), trailing only Microsoft ($3.34T), making its earnings a must-watch event. A company of that magnitude has the ability to move the entire industry it’s in, specifically the semiconductor industry and technology sector, depending on the report’s outcome.
Earnings data often gives rise to dozens of new setups, especially when it comes from a large and influential company, and Nvidia is considered one of the most influential companies of our time. We’ll be watching the report’s details closely to scan for opportunities that may arise.
Aside from Nvidia’s earnings, markets will face multiple tests on the economic front. The market has been highly reactive to headlines over the past two months, moving sharply in both directions based on various catalysts. Some key events and reports this week that may influence market direction include:
- Consumer Confidence Report – Tuesday, 10:00 AM ET
- Minutes of the Fed’s FOMC Meeting – Wednesday, 2:00 PM ET
- GDP (First Revision) – Thursday, 8:30 AM ET
- Personal Income Data – Friday, 8:30 AM ET
- PCE Index (Inflation Data) – Friday, 8:30 AM ET
- Consumer Sentiment – Friday, 10:00 AM ET
It goes without saying that there’s a lot to look forward to this week, but that shouldn’t be seen as a negative. Markets often use such data to assess the overall health of the economy and corporate earnings. Given the uncertainty traders have faced recently, solid data could help boost confidence in a continued bullish recovery. We’ll be analyzing these reports as they’re released and updating them in our morning market updates throughout the week. You can see these morning updates by being part of the Hyper Stocks Pro community. Learn more here.
SPY Technical Analysis:
SPY’s pullback last week provided a healthy technical relief to the trend. The index had been on a near-vertical rally for five weeks, so a pullback was welcomed to let the charts “cool off.” Coming into this week, SPY is projected to open around its 567.00–577.00 support range, the zone buyers need to defend to avoid giving up their entire position and triggering a deeper move lower.
With so many key events this week, a positive outcome could easily push SPY to retest the 587.00 level, which could shift the trend back in favor of the bulls. However, to maximize the chances of seeing another all-time high retest, buyers ultimately need a breakout above 596.55.