By ETF Stocks
Except for the NASDAQ shaving off a little less than 1%, the indexes spun their wheels in the gravel and finished Friday a handful of points higher than the previous week’s close.
After falling apart Monday through Thursday, red, red, and more red, the Dow, S&P and NYSE made up the week’s losses in one green day to end the week. Much like a superhero, bulls emerged in the nick of technical time to save the day.
After Thursday’s close, the four main indexes were trading on multiple support levels. The quartet of indexes was tap dancing on their respective 50-day averages and challenging their lower trend lines connecting pivot bottoms. Another day of losses and two technical analysis sell signals would have been triggered.
While bulls might have donned the cape with bold Bs on their chests, volume was meager, especially for the NASDAQ. To ETF Stocks, that could mean investors will have to fight the fight with support again -- and possibly soon. The good news is, for now at least, the uptrend hasn’t been violated and remains intact.
Some big earnings announcement in the week ahead will help determine if Wall Street continues to maintain its path or fall out of bed.
Some of the market leading names we will be watching include:
Wynn Resorts Ltd. (WYNN)
The Goldman Sachs Group, Inc. (GS)
Intel Corporation (INTC)
Johnson & Johnson (JNJ)
Yahoo! Inc. (YHOO)
Abbott Laboratories (ABT)
Bank of America Corporation (BAC)
eBay Inc. (EBAY)
International Business Machines Corporation (IBM)
QUALCOMM Incorporated (QCOM)
Chipotle Mexican Grill, Inc. (CMG)
Microsoft Corporation (MSFT)
If most of the names in this group report better than expected results and offer robust guidance, then Wall Street will have the jet fuel to move higher. On the other hand, if the global economic slowdown points to future sluggishness, then the market is likely to be weak.
By the end of this week, ETF Stocks and Wall Street will have a broad enough earnings view to start outlining emerging trends. Unlike last week, we believe the gravel will be gone, and tires will get a grip. We just aren’t sure if the driver has it in reverse or drive.