Dead cat bounce or Tiger?
Hey team.
We've got another market brief on $ES for you.
Are we looking at a strong market reversal going supported by strong earning or a trap?
Let’s jump in!
Impact Snapshot
Notable Earnings Tomorrow: META 0.00%↑ IBM 0.00%↑ BA 0.00%↑ T 0.00%↑
Market Evaluation
S&P 500 sees its best back-to-back rally in two months, a rally which was heavily influenced by tech heavyweights.
Following a string of record highs earlier this year, equities took a downturn in April amidst indications that the Federal Reserve intends to maintain higher interest rates for an extended period.
This decline has rendered stocks more appealing by eliminating market excess, prompting investors to shift their attention towards corporate earnings.
Roughly 20% of the S&P 500 has reported earnings through Tuesday. Of those companies, 76% have beaten analysts’ expectations.
Markets Breakdown
On our market report this morning that we’ve posted over on X here we were looking for a potential higher high on today’s session and a clearance above 5076 poor high.
Our early sentiment was that "we'll look for higher high" with no mentions of "gap correction towards the settle" unlike yesterday's report.
That opinion came from the fact that the overnight activity was conducted inside the upper distribution, which as we've mentioned in said report, is a sign of strength.
In addition to that, the poor high at 5076 was seen as "unfinished business" that was awaiting a higher high to correct it.
Market proceeded towards our “flip zone” which set the tone for the session with acceptance above that triggered our bullish continuation plan.
We will look for potential higher high relatively to the US close above 5112 within the upcoming overnight session.
ES
Key points of reference heading into the next session:
Upside Levels: 5127/5154/5186
Downside Levels: 5087/5072/5054
That’s all we got!
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We’ll see you again on Thursday.
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