![]() Palo Alto Networks shares PANW, -1.41% are up after another beat-and-raise quarter from the cybersecurity company. has a “good shot at beating inflation in 2023,” and sees moderately slow growth ahead.īaidu shares BIDU, -0.63% are up climbing after the China-based internet company reported a hefty fourth-quarter profit beat and announced a $5 billion share buyback program. Louis Fed President James Bullard says the U.S. New York Fed President John Williams is due to speak at 5:30 p.m., after markets have closed. The minutes of the Fed’s most recent policy meeting may shed light on where central bank officials stand on more aggressive rate hikes. Oil prices CL.1, -0.59% BRN00, -0.46% are pulling back.įor more market updates plus actionable trade ideas for stocks, options and crypto, subscribe to MarketDiem by Investor’s Business Daily. Also check out MarketWatch’s live blog for all the latest action. Stock futures ES00, 0.22% YM00, 0.19% NQ00, 0.33% are inching higher after the Dow’s nearly 700-point plunge, while the 2-year Treasury TMUBMUSD02Y, 4.674% yield is lower, but still hovering near the highest level since 2007. Traders will now watch to see if the S&P 500 can hold at 3,900 – 3,950, as a break below that “would likely bring more bears out of hibernation,” he says. If you’re feeling a sense of déjà vu, it’s because most of the major declines over the past year started off this way,” said Dunuwila. “As we know, failed breakouts are often followed by sharp moves lower. He described Tuesday’s action as a classic “failed breakout.” The Chart Report’s Patrick Dunuwila made a similar point about what would happen if stocks fell further. Finally, this would also involve breaking the larger uptrend from last October’s lows.” (For those that wish to give this rally a bit more slack, 3900 should also be important.) Such a move would involve slicing back under the 200-day moving average in SPX as well as undercutting the 61.8% retracement zone of the prior low to high range. “Only if SPX undercuts 3945 would I fear that a larger decline might be in store. However, Newton accepted that further declines will make stocks even more vulnerable. “Treasuries look to have sold off in a near-perfect 5-wave decline from 1/19/23, which means that this bounce in yields also should be nearing completion.” Given that the market continues to be led by moves in government bond markets - reflecting expectations of Federal Reserve monetary policy trajectory - any retracement in yields will also underpin stocks, he said. “Thus, some short-term price and time confluence is approaching,” Newton wrote. Additionally, this week represents a 50% time retracement of the prior low to high swing from late December 2022,” he said. ![]() ![]() “rices are now hovering right above the all-important 50% retracement area of the prior low to high range. Other technical factors may also provide assistance to equity bulls. While many blame the shortened holiday week for this lack of volume spike, one would think that volume would be at least a bit more than average on the worst trading day of the year,” said Newton. “Despite SPX having logged the worst trading day performance-wise in over two months’ time, volume was sub-par. He noted the low volume during Tuesday’s slide, which suggested the desire to dump stocks was limited. ![]() “The near-term decline in has now closed in on important support, which should likely provide a possible low to this pullback sometime over the final three days of this short week,” Newton wrote. In a note to clients published late Tuesday, Fundstrat’s head of technical strategy Mark Newton said technical factors and the end of a rally in bond yields should help stocks recover ground in the short term. ![]() The latest slide on Wall Street has left the stock market at “important support” but one which should provide a “reversal back higher,” according to a closely watched research boutique. Investors returned from a three-day break on Tuesday in a pessimistic mood, as the S&P 500 SPX, -2.00% saw its biggest drop of the year. ![]()
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