The S&P 500 Appears to Be Consolidating After Making a New Record High Last Week

Earnings reports this week include WMT, HD, NVDA and FL.

Uptrend 2

On Tuesday, Walmart (WMT) is awaited to post third quarter EPS of $1.18 compared to $1.16 a year ago on revenue of $132.3 billion vs $128.0 billion last year. The Co is a retail giant and on November 12th, the Co announced the launch of Walmart Pet Care, a service that includes Walmart Pet Insurance and pet care services such as dog-walking and pet sitting. In other news, on November 6th, the Co revealed that it agreed to sell its business in Argentina to Grupo de Narvaez, a Latin group. Technically speaking, the RSI is above 50. The MACD is above its signal line and positive. The configuration is positive. Moreover, the stock is trading above both its 20 and 50 day MA (respectively at $143.64 and $141.3). We are looking at the final target of $158.40 with a stop-loss set at $144.30.     

Additionally on Tuesday, Home Depot (HD) is likely to unveil third quarter EPS of $3.01 vs 2.53 last year on revenue of $31.7 billion compared to 27.2 billion a year ago. The Co is the world's largest home improvement specialty retailer and on November 11th, the Co introduced expanded resources and programs to further support its 35,000 veteran and military spouse employees, including guaranteed employment opportunities to associates who are spouses of relocating members of the military. From a chartist's point of view, the RSI is below its neutrality area at 50. The MACD is negative and below its signal line. The configuration is negative. Moreover, the share stands above its 20 day MA ($277.78) but below its 50 day MA ($278.01). We are looking at the final target of $254.40 with a stop-loss set at $289.20.   

On Wednesday, Nvidia (NVDA) is expected to announce third quarter EPS of $2.57 compared to $1.78 a year ago on revenue of $4.4 billion vs 3.0 billion the year before. The Co is a leading designer of graphics processors and on October 21st, Bloomberg reported that Chinese companies including Huawei Technologies have been lobbying the State Administration for Market Regulation to either reject the Co's proposed 40 billion dollar acquisition of Arm Ltd. or to impose certain unfavorable conditions on the deal. From a technical point of view, the RSI is below its neutrality area at 50. The MACD is positive and below its signal line. The MACD must penetrate its zero line to expect further downside. Moreover, the stock is trading under its 20 day MA ($534.06) but above its 50 day MA ($528.04). We are looking at the final target of $445.00 with a stop-loss set at $583.00.    

On Friday, Foot locker (FL) is anticipated to release third quarter EPS of $0.50 vs $1.13 last year on revenue of $1.9 billion, in line with the previous year. The Co is a global athletic footwear and apparel retailer, and its current analyst consensus rating is 13 buys, 11 holds and 0 sells, according to Bloomberg. Looking at a daily chart, the RSI is above its neutrality area at 50. The MACD is below its signal line and positive. The stock could retrace in the short term. Moreover, the stock is trading under its 20 day MA ($37.91) but above its 50 day MA ($36.27). We are looking at the final target of $42.60 with a stop-loss set at $34.60.

Looking at the S&P 500 CFD on a 30 minute chart, the index appears to be consolidating after making a record high of 3,673.90 last week. Price will likely bounce around in between 3,518.00 and 3,674.00 until a breakout occurs. The bias remains bullish, so traders should look for price to break above 3,674.00. If price can make a new high, then the next two Fibonacci targets are at 3,794.00 and 3,856.00. If the index falls below 3,518.00, it would be a negative signal and traders should look to 3,463.00 as possible support. If price fails to rebound off of 3,463.00, then price could drop further to 3,403.00. If the decline its not stopped at 3,403.00, then traders should be cautious as price could slip lower.                 



Source: GAIN Capital, TradingView

More from SPX

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.