S&P500 (SPX) Price Analysis – April 24, 2023

Daily Price Outlook

S&P 500 (SPX) is trading at 4,133.52, up by 0.09% in 24 hours. The S&P 500's rise has started to slow as investors combed through mixed earnings reports and economic data that painted a confusing picture of the state of the economy.

Uncertainty on Inflation and Fed Rates

The S&P 500 rose during the first quarter despite concerns regarding the banking sector, uncertainties about the Federal Reserve's effort to regulate prices, and recessionary worries due to several large-cap technology companies.

Now, speculators looking for clues that the economy could be headed for a recession and which corporations will be able to endure it will place the highest significance on guidance.

Since the start of earnings season, this has been a major issue as Wall Street struggles with ongoing uncertainty on inflation, the Fed's strategy to control it, and the risk of a recession.

Moving forward, it is anticipated that the big day on Thursday, April 27, will reveal that the US economy expanded at an annualized pace of 2% in the year's first three months. Additionally, traders will keep an eye on the findings of the Dallas Fed's Manufacturing survey to get a better idea of the status of the state's manufacturing activity.

Corporate Earnings and SPX

This week, which will mark the midpoint of earnings season, will see the release of mega-cap tech earnings data. The high-interest names expected to report their first-quarter earnings include Alphabet, Microsoft, Amazon, and Meta.

Additionally, earnings reports from Credit Suisse and Coca-Cola are scheduled for Monday before the opening bell. Whirlpool and First Republic Bank will release their financial results following Monday's trading session.

Markets were less optimistic as corporate profits dropped, even though 76% of S&P 500 firms reported earnings so far have surpassed analysts' projections for earnings per share. Using data from Refinitiv, the first quarter profits for S&P 500 companies would fall 5.2% overall.

SPX Price Chart - Source: Tradingview

Daily Technical Levels:

Support Resistance

4113 4147

4097 4165

4079 4181

Pivot Point: 4131

SPX – Technical Outlook

The S&P 500 currently displays a sideways momentum above 4,100 with strong support at 4,1000, although it may face resistance at 4,175 due to a double-top pattern.

If the index surpasses this level, it could move towards the next resistance at 4,170. Conversely, if it falls below 4,040, significant selling pressure might lead to a decline towards the 3,920 and 3,840 levels.

Technical indicators such as MACD and RSI suggest a firm bullish trend. Investors are advised to closely monitor the 4,040 level, as a candle closing above it could indicate an upward direction for the SPX today.