To The Moon

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SPX-Treasury yields vs Reported earnings

SPX-3700 Bull Bear Battle…

Summary:

• $DJIA(.DJI)$ Dow Jones Industrial Average closed its fourth straight week of gains today adding 828 points.

The Dow Jones rose 2.6% on the day to cap its best four-week period since the period ending April 17, 2020.

• $S&P 500(.SPX)$ The S&P 500 rose 2.5% on the day to cap its best two-week period since Nov. 13, 2020.
• $NASDAQ(.IXIC)$ The Nasdaq Composite gained 2.9% to extend its winning streak to two weeks.

Given the terrible earnings of Big Tech companies this week, it's of note for the latter, the battle of the bulls...

• $Apple(AAPL)$ would have led the charge...yet not in top form for the prospect of results

Apple Chief Financial Officer Luca Maestri said on the call that revenue growth in the December quarter will slow compared to the September quarter.

The company sees 10 percentage points of drag from the negative currency impact.

Mac: Maestri said Mac sales "will be down significantly year over year."

Services: Maestri also noted that services will grow but would be hit by the macroeconomic impact on the company's digital advertising and gaming businesses, which also came under pressure in the September quarter, resulting in a near revenue shortfall. a billion dollars in service revenues.

• Another factor also driving the advance: PCE

The gains came after the Federal Reserve's preferred inflation gauge, the core personal consumption expenditures price index, climbed again on an annual basis in September. The Fed is widely expected to raise interest rates by 0.75 percentage point at its Nov. 2 meeting...

Investors' new bet on a less aggressive Fed caused the yield on 10-year T-Bonds to fall below 4%...

All shorter maturities now offer higher yields, which means two things:

- the market fears the return of the recession in the United States.

- the rate hike cycle would be coming to an end...

So much for the little tour of the Macro elements, let's now move on to the technical side of the market.

• Since the lows of this month of October, the SP500 has ranged over 11% in 12 days.

From now on, on the level of 3900 considered to be a resistance...

Going into more detail:

Let's say the easy part is behind, now the SPX should consolidate with a hard to break zone 3900-4000.

Here are the levels (for informational purposes and not buy-sell advice):

• Key levels: 3860 - 4000
• Resistance zone 3900-4000
• Support area 3600-3700

Thanks for reading.

@TigerStars

@CaptainTiger 

@Do_Trading on twitter for regular posts.