We’re anticipating a large week of earnings for big technology names including Microsoft, Alphabet, and Apple through Thursday. After a flush the last few weeks, the S&P 500 (ES) exploded on Monday toward all-time highs at $4,564, locking in gains for the bulls.
While the market is technically “extended” this doesn’t mean the market is guaranteed a pullback. As long as earnings reports are strong and the ES maintains highs above $4,551, look for a potential push to the psychological level of $4,600 at 3+ average true range (ATR). This $4,600 level could also be a good spot for a potential pullback.
If earnings report negatively and the ES trades lower, look for a pullback to $4,526 around Point of Control (POC).
Follow the market, watch the earnings reactions, and avoid having a strict bias toward one direction or another.
Here is our focused list:
FB — After lower-than-expected earnings were released, the news of the boost in share buyback authorization sent FB higher. FB has been dipping to the weekly and daily Ichimoku Cloud, which could always present a dip buy opportunity. If FB accelerates higher this week and hits $345, look for it to move to the 50-day simple moving average (SMA) at the $350 levels.
ROKU — While Snapchat earnings sent ROKU lower last week, ROKU created a gap fill between the daily 21 exponential moving average (EMA) at $328 and the 50 SMA at $333. ROKU is printing a 1-hour squeeze and closed at highs on Monday around POC at $324. If it gains momentum, look for ROKU to break through the daily mean and fill the gap to the 50 SMA.
TSLA — TSLA flew higher on Monday, breaking all-time highs past the $1,000 threshold to $1,045. With TSLA extended, it could keep exploding but there is also a big gap to fill on the downside. As long as it holds above $1,000, we’re leaning toward the bullish upside.
MRNA — MRNA started to explode to our zones on Monday past $344 to $349 and looks like it will keep grinding higher. With upcoming news this week, let’s position ourselves to see if MRNA can push through $350, fill the gap at $359, and move to $377. If MRNA pulls back and holds $345, look for a dip buy.
Stay Focused!