A potential stock market surge could be gearing to happen soon as investors and analysts stay bullish. Some analysts are calling for a bottoming-out soon where price finds itself at a key level of support. Buyers look like they are ready to step in although stuck in volatile behavior that is rocking the discipline of most retail.
Key Drivers For A Market Surge
Although the market is looking incredibly bearish, it doesn't reflect the strong earnings by major companies. Netflix, however, is a key factor in this recent drop after a miss in the expected subscriber numbers last quarter. The plunge sent the stock down over 21% regardless of the yearly revenue. Net income, and subscribers also grew substantially year-over-year.
A big focus on earnings is going to be big for the market as Proctor and Gamble had an impressive beat. If outlook can be raised on most of the value stocks, we might see a strong foothold on market stability this quarter, although nothing is certain.
The same way earnings can help the market surge, it can also plummet major indices if they come out weaker. Last week's COT suggested a further move to the downside. But after today, we'll get a clearer picture on what institutions are buying.
The 200 DMA has served as a reliable level of support in the past, and it could spark a potential rally if price closes above this level. Again, interest rates are always a concern for the value of stocks going forward. But, major bank and healthcare stocks are pumping out more revenue and income over the past quarter.
A major thing in the short term is this moving average. The movement today will be imperative in the next week as to whether we close above or below the level. The next clean level of support is at $4270 which would be a 3.5% move lower.
Yesterday, the Federal Open Market Committee (FOMC), the Federal Reserve’s policy-making body, implemented yet another 75 basis point interest rate hike. While this move was perfectly in line with market forecasts, Chair Powell’s comments following the subsequent press conference, in which he discussed the FOMC’s new set of economic projections, were significant. He continued to […]
Statistics Canada released a surprising new batch of inflation data this morning: month-over-month CPI failed to meet market forecasts, declining by 0.3% instead of the anticipated 0.1%. Rather than being an outlier, the other measurements of CPI mostly followed suit, as both year-over-year Trimmed CPI and Median CPI likewise failed to meet expectations. Trimmed CPI’s […]
At 9:30 pm Eastern Time tonight, the Reserve Bank of Australia (RBA) will be publishing their latest round of monetary policy meeting minutes. While there is a chance that their intentions could come across as more hawkish than expected, they currently have little reason to be. Despite relatively low unemployment at 3.5%, steady GDP growth, […]
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