Tech Earnings on the Horizon
On Tuesday, MSFT and GOOGL are expected to report their earnings after market close. The anticipation continues to build as AAPL, AMZN, and META are scheduled to release their reports on Thursday evening. Shareholders eagerly await these updates, hoping for positive financial results.
The Federal Reserve Meeting
On Wednesday, the Federal Reserve concludes a two-day meeting. Analysts speculate that the Fed will maintain the current fed funds rate through March 20, with the likelihood of a rate cut on May 1. This decision could have far-reaching implications for the market, and investors will be closely monitoring the outcome.
Employment Report Release
Friday brings the release of the January employment report. The job market’s performance is key to gauging the economy’s health and could impact market sentiment accordingly. Investors will scrutinize the report’s findings to gain insights into the overall economic landscape.
“With the S&P 500, S&P 100, and QQQs at all-time highs (ATHs), there isn’t any chart resistance or overhead supply above current prices,” informed Argus. The surge in these mega-cap indices has created a solid foundation for potential growth.
However, it is important to acknowledge certain concerns in the market. Argus highlights the potential risks associated with overbought and divergent momentum, overbought breadth, and stretched sentiment indicators. While there may be no visible chart resistance, trendline resistance for the S&P 500 could be encountered in the 5,000 to 5,100 range, as stated by Goldman Sachs.
Historical data from 1928 shows that the last two weeks of February have been unfavorable for the market. Goldman Sachs points out that these weeks exhibit a consistent pattern of lower performance compared to other periods in the year. This is a noteworthy observation to consider amidst the current market environment.