Charting the S&P 500: Another Setback for the Bulls
Stocks had a chance to run higher this past week but missed their chance.
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It’s a huge week coming up for the stock market, much like in April, with the FOMC meeting converging with important earnings reports. Yet this time around the trend does not look bullish as we continue to move through a weak period for equities.
Why is that?
Historical trends based on several years of data tell us the stock market has a tough time into the fall, and it’s not just “Sell in May and Go Away” that is the reason (though many forget about that as we arrive in midsummer).
Some of the big Magnificent Seven names will report earnings this week, including Microsoft (MSFT), Meta Platforms (META), Apple (AAPL) and Amazon (AMZN). No doubt investors watched the poor outcome from Alphabet (GOOGL) and Tesla (TSLA) and are nervous about how their stocks will perform. It makes sense.
The S&P 500 weekly chart continues to carry a blue candle, so we are still bullish… but hanging by a thread. The MACD is now rolled over but will confirm bearish in another week. Stochastics (momentum) has also rolled over, although money flow remains positive.
It is also the last week of the month, which has been miserable for Nasdaq stocks. Here’s hoping the bulls can turn that around, there are plenty of catalysts to make it happen.
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At the time of publication, TheStreet Pro Portfolio was long MSFT, META, AAPL, AMZN and GOOGL.
