Trading Insights: S&P 500 momentum selling, but uptrend could prevail

Chart 1 Source: Tradingview April 26 2023 8:10 UTC

Market Talk

SPX500 Index sharp sell-off lower yesterday on technical selling pressure

Key bullets:

• SPX500 Index failure for recent price to push above the 4,182 resistance (chart 1) places the 4,050 - 3,908 supports in view in the short term (5-25 days).
• Provided price can remain within the multi-month uptrend channel above the 3,908 support (see chart 1), the prospects for the prevailing uptrend to continue towards the 4,430s remains on the table over the medium term (26-49 days).

Using the SPX500 Index as an indicator for measuring against global stock indices relative strength

The SPX500 index tracks the performance of the largest 500 companies listed on US stock exchanges.

Since many of these companies operate on a global scale, index traders tend to observe the price trends on the SPX500 to forecast the general direction of the major global indices.

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Upcoming Events:

Today’s economic calendar

• Sweden interest rates: Riksbank increased its rate from 3% to 3.5% as expected Speculation that Riksbank could make a downshift and hike at just 0.25% in June if upcoming inflation data can show signs of cooling
• GBP / SEK remains in a multi-month-uptrend gaining +3.87% during the last 52 weeks, eyes on short term (5-25 day) resistance near 12.92, while downside support sits near 12.79762

Source: Trading View April 26 2023 8:22 UTC

Earnings Season:

On deck today:

• Boeing expected to lose $0.98 cents per share during the previous 3 months on $17 billion in revenue
• Meta Platforms Inc. (Facebook) earnings due and expected to show that they earned $1.96 per share over the previous 3 months.

Source: US100 earnings calendar April 26 2023 8:31 UTC

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Today’s trading bullets

EUR / AUD at 2 year highs

Source: Tradingview April 26 2023 8:45 UTC

• EUR / AUD current price jumped to 1.6696 after the key resistance at 1.6380 was cleared, opening up the prospects for a further price advance towards the 1.6830s (October 2020 highs). Downside risk seen below 1.6149.