S&P 500, Nasdaq 100, Dow Jones – Third quarter earnings will guide market movements

S&P 500, Nasdaq 100 and Dow Jones forecasts and analysis

• Data dumps on CPI and US CPI raise equity market prospects.
• Tesla, Goldman Sachs, Netflix and Snap will all be released next week.

US equity markets fell and resumed a strong rebound on Thursday. US inflation came out higher than expected after the latest reading. The current consensus on the move is that market participants are very short at launch and after the initial sell-off. Buyers appeared to be hedging their shorts and found hedging tougher and more expensive: the Nasdaq 100 fell by around 500 before breaking above 700, while the S&P hit a low of 3,490 before the session closed at 3,680. these profits can be held for the next few days or less. especially as companies began to disclose third quarter results.

Next week’s earnings calendar is filled with some prominent names that will open their books. Bank of America (BAC) will launch before the US market opens on Monday. Goldman Sachs (GS) will open pre-market on Tuesday, ready. Johnson & Johnson (JNJ) and Netflix (NFLX) will release the numbers after the close, Tesla (TSLA) reports after the market close on Wednesday, while SNAP (SNAP) will release after the close on Thursday. A mix of heavyweight names, most notably JNJ and TSLA, all of which can drive sentiment and market prices. The US economic calendar next week is relatively light. This makes the Q3 version the main driver.

What is the earning season and what are the things to look for in order to earn?

The daily chart of the Nasdaq 100 remains negative despite the gain on Thursday. There remains a series of highs and lows while the three simple moving averages are weighing on the indicator….

Nasdaq 100 – Daily Charts

… while the S&P 500 has a very similar configuration to the Nasdaq.

S&P 500 – Daily chart

Reseller data shows 61.33% of traders who bought net with a ratio of traders who bought short from 1.59 to 1. The number of traders who bought net was 10.90 % less than yesterday and 2.22% compared to yesterday. the number of net short traders was 7.60% higher than yesterday and down 6.34% from last week.

Usually, we take the opposite point of view of the crowd sentiment. And the fact that traders have a net long position indicates that the $ 500 price may continue to decline. Positioning is lower net length than yesterday but net length last week. The combination of current feelings and recent changes gives us Mixed bias in trading of 500 USD more.

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What do you think about it USA index – bullish or bearish? You can let us know using the form at the end of the article. or contact the author on Twitter @ nickcawley1.