• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock S&P 500 & Nasdaq Composite Approach Critical Resistance; Watch for These Important Levels!
Stock

S&P 500 & Nasdaq Composite Approach Critical Resistance; Watch for These Important Levels!

by April 26, 2024
by April 26, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

A tug-of-war with no clear winner—that’s what the stock market seemed to be playing this week. With a Fed meeting, key economic data, and more earnings on top, will a winner emerge next week?

It was an interesting week in the stock market. Economic data shows that growth is slowing, while inflation isn’t showing signs of slowing down. This possible “stagflation” scenario paves a path towards more uncertainty, especially when it comes to interest rates. And with next week’s Fed meeting, investors are becoming even more cautious about making any trading or investing decisions.

Looking back at last week, we can see how Tesla (TSLA) bounced higher after it missed earnings. Meta Platforms (META) beat earnings estimates, but its stock price gapped lower on weak Q2 guidance. That was a concern, since META has been enjoying a bullish rally since the end of 2022. It remains to be seen if the gap up in META’s stock price on February 2, 2024 will get filled. The stock is trading at its 100-day simple moving average (SMA), which could be a support level the stock bounces from; however, META could also end up breaking below it and sliding further.

Investors were concerned by META’s weak guidance, as they were looking for Tech earnings to be the catalyst that pushes the market higher. After META took most of the market lower, the next worry was whether the other Tech stocks would follow the same path. Fortunately, that didn’t occur. Microsoft (MSFT), Alphabet (GOOGL), and Snap (SNAP) all beat earnings, and their stock prices moved higher, reversing the downtrend.

Is this Reversal Sustainable?

The positive earnings excited the bulls, but it felt like they hit a wall. There wasn’t enough follow-through to push the stock market indexes higher, and the bears didn’t seem to be interested in putting up much of a fight.

While the S&P 500 ($SPX), Dow Jones Industrial Average ($INDU), and Nasdaq Composite ($COMPQ) traded higher on Friday, the weekly chart shows the S&P 500 and Nasdaq didn’t close above last week’s high. The Dow did close slightly higher, though.

Follow the live chart here.

The daily charts are more attractive. Below is the daily chart of the Nasdaq Composite, which shows that, after last Friday’s low, the index moved higher, then fell on Thursday before recovering those losses at the close of the trading day. Today (Friday, April 26), the Nasdaq gapped higher and closed above Wednesday’s swing high.

CHART 1. DAILY CHART OF NASDAQ COMPOSITE. After closing higher than the last swing high, there’s hope the Nasdaq could rally higher depending on what unfolds next week. Chart source: StockCharts.com. For educational purposes.

The Nasdaq Composite is getting close to its 50-day SMA, which would be a strong resistance level for the index.

Follow the live chart here.

Moving on to the S&P 500, the index is up against resistance from its 50-day SMA, which coincides with a downward-sloping trendline.

CHART 2. DAILY CHART OF S&P 500 INDEX. If the S&P 500 breaks above the downward sloping trending on the top of the channel and its 50-day moving average, there could be upside follow-through. Chart source: StockCharts.com. For educational purposes.

Follow the live chart here.

The Dow is the most bullish of the three broad indexes. It has seen a clear reversal from a support level (red dashed line), and any bullish news next week will likely move the index higher.

CHART 3. DAILY CHART OF THE DOW JONES INDUSTRIAL AVERAGE. A clear bounce from a significant support level could mean the Dow has more buying than selling pressure. Chart source: StockCharts.com.

Which Way Will the Stock Market Move?

It looks like the bulls are hungry to be the more dominant player. If any news blocks the bulls from taking this market any higher, the bears will be quick to take over. Remember, the market takes the stairs up and the elevator down. The market will probably continue to see some choppiness until Wednesday afternoon, when the Fed makes its interest rate decision. That will probably be what will take the stock market down or up.

End-of-Week Wrap-Up

S&P 500 closes up 1.02% at 5,099.96, Dow Jones Industrial Average closes up 0.4% at 38,239.66; Nasdaq Composite closes up 2.03% at 15,927.90$VIX down 2.28% at 15.02Best performing sector for the week: TechnologyWorst performing sector for the week: MaterialsTop 5 Large Cap SCTR stocks: Super Micro Computer, Inc. (SMCI); Coinbase Global Inc. (COIN); Vertiv Holdings (VRT); MicroStrategy Inc. (MSTR); Vistra Energy Corp. (VST)

On the Radar Next Week

April ISM Manufacturing PMIFed interest rate decisionFed Chairman Powell’s Press ConferenceMarch JOLTS Job Openings reportApril Non Farm Payrolls (Jobs) ReportApril ISM ServicesEarnings season continues with Amazon (AMZN), Advanced Micro Devices (AMD), Eli Lilly (LLY), Barrick Gold (GOLD) and Booking Holdings (BKNG) reporting.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

You Might Also Like
  • Semiconductors are at CRITICAL Level!
  • Unlocking the Secrets to Profitable Semiconductor Investments
  • MEM TV: Markets Stuck Amid Fed Comments
  • An Indicator to Reduce Whipsaws and Ride Trends
Share
0
FacebookTwitterPinterestWhatsapp

previous post
META’s Reverse Island – Two More Mag Seven Islands to Monitor
next post
MEM TV: Wait For This Before Getting Back In

You may also like

Earnings for 2023 Q3 Show Market Still Overvalued

January 5, 2024

The Titanic Syndrome Indicator Issues a WARNING!

February 21, 2024

Top Five Charts of 2023 #2: Ten-Year Treasury Yield

December 19, 2023

How to Spot the Perfect Buying Opportunity in XLRE

September 24, 2024

DP Trading Room: Spotlight on Mega-Cap Earnings

July 29, 2024

The Ord Oracle July 11, 2023

July 13, 2023

These Stocks Are Looking Good As We Move Into 2024

December 30, 2023

The GDP PCE ADP Waltz

August 30, 2023

Stock Market Ends Week on Optimistic Note, With a Few...

May 24, 2024

Breakaway Gaps: Scanning for High-Probability Trading Opportunities

May 3, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025
    • Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’ consumer products

      May 30, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Investors Hesitant Ahead of Fed Meeting:...

    September 17, 2024

    With The Top 10 Picks In...

    February 19, 2024

    The Ord Oracle March 6, 2023

    March 7, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here