Good morning for the week of July 25th, here is your weekly outlook.
The monthly candle remains green but below a 50% retracement of June’s large red candle. Bearish
The weekly candle remains below the weekly 20ma. Last week’s candle closed with wicks on both ends indicating indecision, but closed above the prior 5 weeks touching 400.18 as its high. Looks to be a sign of slowing momentum below 400. We saw price open over the weekly pivot and move past the weekly R2 line, closing above it’s daily 50sma. Weekly pivots to watch this week are:
- R2 = 411.50
- R1 = 403.29
- Pivot = 391.98
- S1 = 383.77
- S2 = 372.46
Price stayed above the daily 20sma and 5sma, bouncing far above the 10 on the daily. Currently, all short term moving averages are pointing up. Price is above the 380 key level with the 400 key level just above. The next key level below is 362.17 prior swing low, and above is 418.21 the 23.6% fibonacci level.
Expect to see turbulence this week with big S&P 500 earnings reports coming out AND the FOMC meeting this week. The chart anticipates a swing lower, showing slowing momentum with descending volume and other indicators lagging, as well as price on the daily being high above the moving averages similar to on 7/8 and 6/27. But if price can break 400, this would turn momentum towards the 420 area.
Major economic events this week:
- FOMC begins
- 10am Consumer Confidence and New Home Sales
- 8:30am Goods orders
- 10am Pending Home Sales
- 2pm FOMC announcement
- 2:30pm Jerome Powell press conference
- 8:30am Jobless claims
Major earnings this week:
- Tuesday Premarket: UPS, GM, GE
- Tuesday Postmarket: GOOGL, MSFT, V
- Wednesday Premarket: BA
- Wednesday Postmarket: META, F
- Thursday Postmarket: AAPL, AMZN, INTC