S&P 500 (SPX), Dow Jones (DJI), Nasdaq Composite (IXIC) Daily Technical Outlook: Rate Hikes and Earnings Set the Stage for a Volatile Week

Key Insights

• Financial week buzzes with Fed’s rate decision, October job stats, and Apple earnings.
• Traders eagerly await Fed’s decision, hoping for a break in rate hikes for 2023.
• McDonald’s and SoFi Technologies shine in pre-market with earnings exceeding expectations.
• Gold companies peak since March; New Gold and Gold Fields see ~25% monthly gains.
• S&P 500 sentiment bullish above $4,100; resilience to be tested in the coming days

Quick Fundamental Outlook

The financial landscape is poised for an eventful week with three major happenings on the horizon: the Federal Reserve’s interest rate verdict, October’s employment statistics, and notable corporate earnings headlined by Apple.

The prevailing market fluctuations have traders eagerly awaiting the Fed’s decision, hoping for a hiatus in the rate-increase sequence for 2023. Notably, the 10-year Treasury yield recently dipped to 4.9% post touching 5%.

Pre-market activities spotlighted McDonald’s and SoFi Technologies, both surpassing earnings predictions. Meanwhile, gold companies are witnessing their peak performance since March, with specific firms like New Gold and Gold Fields marking approximately 25% monthly upswings.

S&P 500

The S&P 500 (SPX), currently valued at $4,117, has experienced a slight decline of 0.48% within the last 24 hours. Delving deeper into the 4-hour chart, the index’s pivotal point stands at $4,102. While upward momentum could face resistance at $4,197, surmounting this could see challenges at the $4,257 and $4,331 levels.

Conversely, initial support is observed at $4,051, followed by stronger bases at $4,003 and $3,941. The RSI, currently at 26, hints at an oversold market. The price’s proximity to the 50 EMA of $4,101 further underscores the current bearish sentiment.

However, a notable downward channel breakout at $4,150 suggests a selling trend, but the pivot point near $4,100 offers some solace. In summary, the S&P500 exudes a bullish aura above $4,100, but the coming days will reveal if this resilience holds or falters.

NASDAQ

NASDAQ‘s recent performance has been a matter of intrigue for investors. At a current value of $12,643, the index witnessed a dip of 0.50% in the last 24 hours. Analyzing the 4-hour chart, a vital pivot point is evident at $12,865, acting as a balancing factor for potential price fluctuations.

While the index might face resistance at $13,201, breaking through could lead it to challenge the $13,401 and $13,709 levels. Conversely, the immediate support stands firm at $12,532, followed by cushions at $12,278 and $11,936.

The RSI, a key market sentiment indicator, is presently at 30, hinting at an oversold market. The MACD suggests potential downward momentum, while the 50 EMA, being at $14,772, indicates that the price is well below this average, reinforcing the short-term bearish sentiment.

Interestingly, the observed downward channel suggests a selling trend, but the RSI’s oversold condition coupled with a significant support at $12,530 hints at potential buying interest. In conclusion, the NASDAQ seems to be in a bearish phase below the $12,865 mark.

Dow Jones

The Dow Jones Industrial Average (DJIA) Index has shown a promising uptick, registering at $32,599, a positive leap of 0.68% in the last 24 hours. Analyzing its 4-hour chart, a significant pivot point emerges at $32,794.

On the upside, resistance looms at $33,261, followed by subsequent hurdles at $33,646 and $34,024. Conversely, the index might seek immediate support at $32,344, with further cushions awaiting at $32,081 and $31,777. The RSI, hovering around 36, suggests a bearish sentiment.

Interestingly, the DOW’s trajectory is currently below its 50 EMA of $33,053, reinforcing the bearish view. Recent patterns indicate a bounce from the $32,340 support, but a strong resistance at $32,800 persists.

To summarize, the DOW’s sentiment leans bearish below $32,800, and the upcoming sessions will determine its true course.

For a look at all of today’s economic events, check out our economic calendar.