S&P 500 Grinds Out Trading Week With Limited Economic Data Available

As we look to round out the trading week with U.S. equity futures seemingly brushing off failed votes to reopen the U.S. government and a mixed bag thus far through earnings season, investors will have ample time to study the technicals of the market throughout the weekend. And with that in mind, it shouldn't be lost on those investors/traders who desire to get a jump on next week's earnings releases that will include a heavy dose of tech sector earnings releases. Apple Inc. (AAPL) will be the first of the FAANG stock's to report next week and since Netflix (NFLX) reported, which was found to beat estimates but fall in price due to guidance. As it pertains to the FAANG stocks or stock index, the following chart (via Miller Tebak) is rather eye-opening.

In Finom Group's (for whom I am employed by) State of the Market weekly video-blog, whereby Wayne Nelson and I discuss the weekly issues facing the market and investors, we dive into the chart.  At first, glance what is eerily transparent in the FAANG index chart is the head-and-shoulders chart pattern that seems to have begun in March of 2018 with the left shoulder, peaked in September with the head and is presently forming a right shoulder in January 2019.  It will take some heavy lifting to change the presentation of the chart, but on a positive note, the same head-and-shoulder pattern was created in January 2018 through May 2018, also depicted in the chart.  We'll see how it shakes out starting next week, but if Netflix was any indication of what may come to FAANG...

The S&P 500 (SPX) enters Friday still attempting to claw its way back from a Tuesday sell-off. For the week, SPX is down $28/points. The weekly expected move is $41/points, which was actually achieved in a single day on Tuesday and as such it proves irrelevant Friday although we'd be of the opinion that the market will probably stay within the weekly move expectations for the week. This is suggested because Asian markets had a strong overnight session, coupled with a strong start to the European trading day. There's not enough of a catalyst to produce an outsized move for the SPX today unless a headline of consequence, pomp and circumstance surfaces. As such, I'd be of the opinion the weekly expected move isn't breached to any degree of significance. With that being said let's look at some of the most recent economic data released,

One of the consequences from the prolonged government shutdown has been the lack of reporting of certain government, economic data. This article from Reuters outlines which pieces of economic data have gone unreported due to the shutdown.

"The first casualties were November’s new-home sales, advance trade, wholesale and retail inventories reports, which were scheduled for release in the last week of December. Publication of these reports for December is also likely to be delayed.

Also postponed was November’s construction report detailing the value of construction work on new structures or improvements to existing structures for private and public sectors. Trade data for November was also delayed.

November business inventory data as well as the factory orders report has been delayed. December’s retail sales, housing starts and building permits data have also not been released. It is unlikely that December durable goods orders, personal income and consumer spending reports will be published."

1 2 3 4
View single page >> |
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.