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04/19/2024 |

Market Update Into April 22nd: Indexes Take A Beating

Last week we warned that the cracks in the market were getting wider and this week they finally gave way. The major indexes put in new daily lows every day this week; sell pressure the likes of which we’ve not seen since October of last year. Despite the pain, the market has been running hot and flashing signals of weakness for some time, so a reset was long overdue. In other news;

With indexes now down between 7-10% from their recent highs, could this selloff be getting exhausted? Let’s dig into the charts and find out.

Weekly Analysis

SPY (SPDR S&P 500)

After blowing through the February gap, the SPY ETF closed the week at $495.16 (-3.07%). Just below lies the 100-day SMA and the October 2023 AVWAP, which could act as a powerful area of support in the weeks to come. RSI is also nearly oversold for the first time in half a year.

This is a daily chart of the SPY index.

QQQ (Invesco QQQ Trust)

Much like the SPY, the QQQ ETF sliced through the February gap and closed at $414.65 (-5.39%), right at the October 2023 AVWAP. Meanwhile, the RSI is flashing its first oversold reading since those same lows, suggesting this move could be overdone in the near term.

This is a daily chart of the QQQ index.

IWM (iShares Russell 2000)

Despite failing below the 100-day SMA and the October 2023 AVWAP, the small caps held up fairly well this week and closed at $193.14 (-2.79%). With RSI flattening out just above an oversold reading, could this index see a short-term bounce next week?

This is a daily chart of the IWM index.

Earnings

This is an image of the most important earnings from this week. All the names and data in this image is listed below.

Notable Results

MS (Morgan Stanley)

  • EPS: $2.02 vs  $1.68 est 
  • SALES: $15.136B  vs  $14.337B est

JNJ (Johnson & Johnson)

  • EPS: $2.71  vs  $2.64 est
  • SALES: $21.383B  vs  $21.398B est

BAC (Bank Of America)

  • EPS: $0.83  vs  $0.77 est
  • SALES: $25.818B  vs  $25.464B est

UNH (UnitedHealth Group)

  • EPS: $6.91  vs  $6.62 est
  • SALES: $99.796B  vs  $99.290B est

SCHW (Charles Schwab)

  • EPS: $0.74 vs  $0.74 est 
  • SALES: $4.740B  vs  $4.714B est

GS (Goldman Sachs)

  • EPS: $11.58 vs $8.60 est
  • SALES: $14.210 vs $12.917B est

UAL (United Airlines)

  • EPS: $(0.15)  vs  $(0.57) est
  • SALES: $12.539B  vs  $12.450B est

IBKR (Interactive Brokers)

  • EPS: $1.64  vs  $1.63 est
  • SALES: $1.22B  vs  $1.20B est

ASML (ASML Holdings)

  • EPS: $3.38  vs  $3.43 est
  • SALES: $5.75B  vs  $6.13B est

TSM (Taiwan Semiconductor)

  • EPS: $1.38  vs  $1.32 est
  • SALES: $18.873B  vs  $18.395B est

NFLX (Netflix)

  • EPS: $5.28  vs  $4.54 est
  • SALES: $9.40B  vs  $9.30B est

ISRG (Intuitive Surgical)

  • EPS: $1.50 vs $1.41 est
  • SALES: $1.89B vs $1.87B est

AXP (American Express)

  • EPS: $3.33 vs $2.95 est
  • SALES: $15.801 vs. 15.786 est

PG (Proctor & Gamble)

  • EPS: $1.52 vs $1.41 est
  • SALES: $20.195B vs $20.408B

What’s Happening Now

AAPL (Apple)

Apple has been riding the struggle bus for months now, but next week’s historical performance suggests bears might need to take their foot off the gas. With an 84% win rate and a mean return of 3.12%, history is on the side of the bulls for outperformance next week.

This is an image of Apple's weekly seasonality chart.

SCHW (Charles Schwab)

With the March 2023 gap nearly filled, SCHW insiders appear to be taking advantage of the post earnings strength to unload shares. Over 100,000 shares were sold this week by the likes of the CEO, President, and more, for a combined total of over $7m in earnings.

This is an image of the recent insider sales for Charles Schwab.

GS (Goldman Sachs)

Analysts were not shy about reiterating their buy ratings on Goldman Sachs after their blowout earnings report this quarter. That said, the stock is facing headwinds as it struggles to gain a new all-time high before May arrives, which is historically its weakest-performing month.

This is an image of the recent analyst buy ratings for Goldman Sachs.

Believe it or not, this is just a fraction of what happened in the markets this week. For a full run down delivered straight to your inbox every weekend, sign up for The Official TrendSpider Newsletter!