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Sizing Up the S&P 500

  • S&P 500 forms another tight range near 52-week high
  • July 20 low held July 14 high as resistance becomes support above April 2022 weekly high
  • Advance / Decline line confirms breadth
  • March 2022 high of 4637 may remain in play
  • Few bearish signs evident amid risk-on sector performance

Sector Watch

  • Banks, energy leading this quarter as money rotates from big tech
  • Chinese stocks rise on Xi stimulus pledge
  • Small caps outperforming as Dow Jones Industrials have longest positive run since 1987.
    • CNBC: One more positive day for $INDU would be longest streak since 1897.
  • Value outperforming growth in July.
SPDR S&P 500 ETF (SPY), daily chart, with select indicators and patterns.

Key News

  • Fed hikes as expected; few changes made.
  • Commodities rise after China pledges to boost economy.
  • July consumer confidence beats on strong expectations and job sentiment. June revised higher.
  • Microsoft (MSFT) falls as AI spending rises and legacy Windows business slows.
  • Alphabet (GOOGL) rallies on strong cloud sales.
  • Meta Platforms (META) earnings, revenue beat as lower capex boosts margin outlook.
  • Netflix (NFLX), Tesla (TSLA) and ServiceNow (NOW) drop and as traders “sell the news.”
  • State Street Investor Confidence Index still negative despite new highs for S&P 500

Patterns & Signals

  • American Express (AXP) pulls back to 50-day MA
  • Trade Desk (TTD) pulls back to 21-day EMA
  • (CRM) attempts to hold May 31 high
  • Delta Air Lines (DAL) pulls back to 21-day EMA
  • Marvell Technology (MRVL) grinding higher along 21-day EMA

Mover of the Week: Badger Meter

  • Provider of smart water meters has gapped higher after beating estimates the last 2 quarters.
  • Benefiting from infrastructure investment.
  • BMI +50% YTD

Upcoming Events

  • Thursday (7/27):
    • Earnings (post market): INTC, F, ENPH, FSLR
  • Friday (7/28): PCE inflation
    • Earnings: XOM, CVX, PG
  • Monday (7/31):
  • Tuesday (8/1): ISM Manufacturing
    • Earnings: AMD, SBUX
  • Wednesday (8/2): Crude oil inventories
    • Earnings: QCOM, PYPL, SHOP
  • Thursday (8/3): CPI, jobless claims
    • Earnings: AAPL, BABA

Using the Platform

Bollinger Bands

Standardized Performances for ETF mentioned above

ETF1 Year5 Years10 Years
SPDR S&P 500 ETF (SPY)+17.50%+63.40%+176.32%

As of June 30, 2023. Based on TradeStation Data.

Security futures are not suitable for all investors. To obtain a copy of the security futures risk disclosure statement Investment and Trading Disclosures Booklet – Futures.

Security futures are not suitable for all investors. To obtain a copy of the security futures risk disclosure statement Investment and Trading Disclosures Booklet – Futures.

Exchange Traded Funds (“ETFs”) are subject to management fees and other expenses. Before making investment decisions, investors should carefully read information found in the prospectus or summary prospectus, if available, including investment objectives, risks, charges, and expenses. Click here to find the prospectus.

Options trading is not suitable for all investors. Your TradeStation Securities’ account application to trade options will be considered and approved or disapproved based on all relevant factors, including your trading experience. See Characteristics and Risks of Standardized Options.

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David Russell is Global Head of Market Strategy at TradeStation. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them appraised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.