Individual Institutional Fintech & Developer
Sign in
Open account
Individuals Institutional

Call toll-free 800.328.1267

Login

Market Insights

Opportunity knocks for those with trading in their DNA.
Curiosity creates opportunity. Insights create strategy. Born traders create their destiny.

Stocks

Options

Futures

Market Trends | Markets
S&P 500 Holds Above March High, Growth Strengthens: Market Trends
David Russell
May 23, 2024

Downloads are available here. TradeStation’s ideas on TradingView are available here.

Next market trends on July 11.

Sizing Up the S&P 500

  • S&P 500 forms tight consolidation above old highs after quick advance
  • Price action potentially similar to November
  • Strength follows weekly signals:
    • VIX closed under 12
    • S&P 500 had new weekly closing high
  • “No-cut” environment may favor growth over cyclicals.
S&P 500, daily chart, with select studies and patterns.

News, Views & Trends

  • Nvidia (NVDA) earnings, revenue, guidance higher than expected.
  • Snowflake (SNOW) revenue, guidance beat.
    • Will traders eye 2/29 gap around $195?
  • Solar jumps as sentiment turns
    • UBS sees AI-electricity demand boosting FSLR
    • China solar makers issue statement against dumping
    • Note: Utilities, with solar/wind and AI energy exposure, have already rallied
  • Housing weakens.
    • Existing home sales -1.9% vs +0.5% estimate in April. Supply rises from 3.2 months to 3.5 months.
    • Reffkin of Compass (COMP) tells CNBC: Sellers now exceed buyers, most price drops in 10 years in U.S. housing.
    • Good news for inflation?
  • Energy weakens
    • Inventories higher +1.8mln vs -2.4mln estimate.
    • Reuters: Brent internals, refiner margins suggest demand is weakening
    • Good news for inflation?
  • Strategists remain bullish:
    • Ed Yardeni: Earnings growth my push S&P 500 to 8,000 by 2030
    • Mike Wilson of Morgan Stanley raises S&P 500 target from 4,500 to 5,400
    • Goldman Sachs: Chinese stocks may climb further
  • Tech beyond AI:
    • J.P. Morgan: PC growth may support HPQ
    • Citi: Potential analog rebound may support TXN, MDHP, ADI
  • Retail earnings:
    • Walmart (WMT) earnings, revenue beat on comp sales, ecommerce, advertising
    • Target (TGT) margins narrow on price cutting
    • TJX (TJX) jumps to new highs as earnings, revenue beats

Upcoming Events

  • Mon 5/27: Memorial Day
  • Wed 5/29: Earnings: CRM, HPQ, ANF, DKS
  • Thu 5/30: GDP revision, initial jobless claims, crude oil inventories (1 day late)
    • Earnings: COST, MRVL, MDB, DELL, GPS, ZS, BBY
  • Fri 5/31: PCE inflation
Tags:

About the author

David Russell
David Russell is Global Head of Market Strategy at TradeStation. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them apprised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.

Related stories

New Chapter in AI Boom Revives Megacaps

New Chapter in AI Boom Revives Megacaps

by David Russell | Dec 12, 2024

Downloads are available here. TradeStation’s ideas on TradingView are available here. Check out our next “State of the Market,” on Monday, 12/16. Sizing Up the S&P 500 S&P 500 approaches 6,100 after holding last week's low RSI near overbought is potentially...

Stock Picking Returns as Calm Sweeps the Market

Stock Picking Returns as Calm Sweeps the Market

by David Russell | Dec 9, 2024

Stock picking could be making a comeback as volatility falls and attention shifts from interest rates to individual growth stories. The S&P 500 rose 1 percent between Friday, November 29, and Friday, December 6. It was the third straight positive week,...

Crypto Stocks Jump with Bitcoin in New Bull Market

Crypto Stocks Jump with Bitcoin in New Bull Market

by TradeStation | Dec 5, 2024

Cryptocurrencies like Bitcoin have entered a new bull market with Donald Trump returning to the White House and investors diversifying into new assets. Digital assets have a combined value of about $3.5 trillion, according to data from TradingView. It's up more than...