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Can Tech Earnings and Macro Data Push the S&P 500 Past Key Resistance?
This week markets begins on a guardedly optimistic note following a strong tech-driven recovery including eased tensions from the Persian Gulf. We must note, however, markets are to monitor the heavy upcoming economic data, corporate earnings, and key technical resistance levels if to breach this week.
KEY DRIVERS TO MARKET MOVEMENTS
- Geopolitics and other relevant Macro Drivers US President's decision to pause strikes on Iran has temporarily cooled oil and natural gas price spikes, lifting a major weight off equities. At the same time, markets are navigating sticky Treasury yields and the aftermath of recent currency interventions supporting the yen.
- Economic Indicators this week
Aug 3- US ISM Manufacturing PMI July
Aug 4- US JOLTS Openings June
Aug 5- US ISM Services PMI July
Aug 7- US Unemployment Rate July
Aug 7- US Non-Farm Payrolls July
Source: Finlogix
- Q2 Earnings Reports this week
Major Q2 earnings continue with high-stakes reports from AMD, Palantir, and Disney that will test artificial intelligence momentum.
Aug 3- Palantir Technologies- commercial customer growth, profit margins and the software demand to justify its high valuation.
Also, Vertex Pharmaceuticals, Clorox and Marriott International
Aug 4- AMD- Markets focus on data center GPU shipments, AI hardware demand, and guidance for upcoming chip infrastructure.
Caterpillar -metrics to watch are global equipment sales, order backlogs, and management commentary on construction and mining activity.
In addition, reports from McDonalds which can provide insights to spending resilience.
Also Merck & Co.
Aug 5- Eli Lilly- areas to monitor are sales volumes and inventory levels for flagship weight-loss and diabetes medications.
Also reports from CVS, Occidental Petroleum and The Walt Disney
Aug 7- Berkshire Hathaway
TECHNICALS
S&P500 in July market volatility, sharp as lowering to 7316 before illustrating a remarkable technical recovery to close the month at 7489. This swift stock market recovery was fueled by stronger-than-expected corporate earnings and an active sector rotation away from mega-cap tech stocks.
Key Price Levels
- Resistances
Resistance 7579 Marked just above the current price level.
2nd Resistance 7615 Labeled as a test to break barrier further up.
- Supports
Support 7493 as a key level (noted as previous resistance last week).
Major weekly Support located lower down at 7366.
Deeper Support found further down at 7219.25
Source: ACY
RSI or Relative Strength Index near the 50 midline, indicating neither overbought nor oversold conditions, following a recent bounce from lower levels.
ATR or Average True Range as it shows market volatility holding steady around the 100 level.
Conclusion & The ACY Edge
The S&P500 viewed with a short-term bullish momentum driven by a recovery and easing geopolitical tensions. However, we should expect heightened volatility as the index tests key overhead resistance near 7579 price region while awaiting major tech earnings and economic data.
A decisive breakout is needed to extend its rally, whereas failure to clear resistance may trigger a pullback toward support at 7366, with the index testing key technical overhead boundaries while high-stakes tech earnings (AMD, Palantir) and tier-one macro data (PMIs, Non-Farm Payrolls) loom, traders should expect heightened two-way volatility.
Disclaimer: This content may have been written by a third party. ACY makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplies by any third-party. This content is information only, and does not constitute financial, investment or other advice on which you can rely.
