Refocusing on Earnings... Maybe...
While the biggest weeks for earnings are now behind us and announcements are starting to taper off, this week will still be a busy one. Earnings to watch for include Walt Disney (DIS), General Motors (GM), Macy's (M), Nvidia (NVDA), Cisco Systems (CSCO), and Nordstrom (JWN).
The conclusion of last week's G20 meeting and a vote of confidence from Greek's parliament on Friday for its prime minister will hopefully start to move some of the focus away from Europe and the teeter-totter of news reports that have swung the market wildly from one day to the next in recent weeks. Although the latest out of Europe, including Greece's push over the weekend for governmental reforms, and concerns over Italy's future following rumors that its prime minister was on the verge of resigning, have continued to impact trade early this week. Italy is the euro-zone's third largest economy.
The index futures had a strong open to trade on Sunday evening, but fell sharply back to Friday's lows before turning higher once again in early premarket trade to recover most of the losses as we approach Monday's opening bell. Despite an upper-level base on the 30-minute charts though, the larger time frame action makes this trading range susceptible to holding highs in the early morning intraday since the pull off lows will create exhaustion into last week's highs and larger trend resistance from highs last month will limit upward mobility early this week even if the market can managed to shift momentum later on to push through last week's highs.
Nasdaq Composite (Figure 3)
Unless otherwise stated, the index action described in this article relates to the E-mini futures contracts for the respective indices. Actual index action may differ slightly in terms of pattern formation, although the market bias will remain the same.
Toni Hansen is president and co-founder of the Bastiat Group Inc., DBA Trading From Main Street. Toni is one of the most respected technical analysts and traders in the industry. She has been trading and educating new traders, money managers, professional market analysts and traders throughout the boom and bust of the last decade. She has worked in conjunction with some of the world's top financial exchanges. Learn more about Toni Hansen and the educational services she provides through her website at http://www.tonihansen.com.