Time for a slight rebound?

מעודכן
The S&P 500 Index bounced off the support near $4,103 on Friday. Then, today, the futures market opened up about 0.5%, bringing the index closer to $4,140 (by the way, on Friday, the futures market also opened up by approximately the same amount). Now, we will observe whether the index will overtake its Friday high; if yes, it will bolster the odds of a rebound in the short term (potentially up to somewhere between $4,200 and $4,300). For more clues about the rebound, we will also watch the Chinese stock market as we expect it to go through the relief ahead of the U.S. stocks (as a matter of fact, SSE has already been trending up in the last week, with HSI somewhat lagging). However, if SPX fails to take out its Friday high, accompanied by a spike in the VIX, it will alert us to more downside.

The list of some of the corporations reporting their earnings this week:
- Advanced Micro Devices AMD
- Airbnb ABNB
- Apple AAPL
- Caterpillar CAT
- CVS Health Corp. CVS
- HSBC Holdings HSBC
- McDonalds MCD
- Pfizer PFE
- Pinterest PINS
- Shopify SHOP
- Stellantis N.V. STLA

Technical analysis gauge
Daily time frame = Bearish
Weekly time frame = Bearish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
הערה
At the start of this week, we discussed the potential for a slight rebound in the price of SPX. Subsequently, the markets turned to the upside, and SPX broke above $4,200. In the meantime, a new attractive setup for a short trade emerged (shown in Illustration 1.01). We will update our thoughts on the asset after the FOMC meeting.

Illustration 1.01
תמונת-בזק
The picture above shows the daily chart of SPX and the setup for a short trade, which involves taking a short position with a breakout below the lower bound of the downward-sloping channel and placing a tight stop-loss order above the lower bound.
Chart PatternsTechnical IndicatorsIndicesSPX (S&P 500 Index)S&P 500 (SPX500)SPDR S&P 500 ETF (SPY) Trend Analysisus500usstocks

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