Skip to Main Content

05/10/2024 |

Market Update Into May 13th: A Low Volume Drift Higher

Despite clocking the lowest daily volume levels we’ve seen in over a year, the markets resumed ‘up-only’ mode this week. This was largely driven by the news of hotter-than-expected unemployment numbers, which market participants view as a tailwind for the potential of rate cuts to arrive this year. The SPY and QQQ are again within earshot of new all-time highs! In other news,

Indexes again appear to be at a pivotal point. Will they make new highs next week, or is this just a retest before the next leg lower? Let’s dig into the charts and see.

Weekly Analysis

SPY (SPDR S&P 500)

Clocking the best performance of the major indexes, the SPY ETF closed less than 1% from its all-time high and ended the week at $520.84 (+1.94%). The price found near-perfect support mid-week at the year-to-date Point of Control and even managed to flip back into ‘Strong Uptrend’ territory per the CHATS indicator.

QQQ (Invesco QQQ Trust)

After finding support at the 50-SMA and the year-to-date Point of Control on the lowest volume day in more than a year, the QQQ ETF closed the week strong at $442.06 (+1.57%). Notably, the CHATS indicator has yet to yield a ‘strong uptrend’ reading.

IWM (iShares Russell 2000)

The rotation out of small caps was clear this week, as the IWM ETF lost its ‘outperformer’ status to close only slightly higher, at $204.31 (+1.21%). While the contrast in relative volume was not as apparent in this index as its counterparts, it did manage to find support at the 50-SMA.

Earnings

Notable Results

DBX (Dropbox)

  • EPS: $0.58  vs  $0.50 est 
  • SALES: $631.30M  vs  $628.67M est

U (Unity Software)

  • EPS: $(0.75)  vs  $(0.65) est
  • SALES: $460.00M  vs  $431.55M est

MARA (Marathon Digital)

  • EPS: $1.26  vs  $0.22 est
  • SALES: $165.200M  vs  $180.690M est

RBLX (Roblox)

  • EPS: $(0.43)  vs  $(0.53) est 
  • SALES: $923.80M  vs  $922.98M est

ARM (Arm Holdings)

  • EPS: $0.36  vs  $0.30 est 
  • SALES: $928.00M  vs  $875.59M est

HOOD (Robinhood)

  • EPS: $0.18  vs  $0.05 est
  • SALES: $618.00M  vs  $548.61M est

ABNB (Airbnb)

  • EPS: $0.41  vs  $0.23 est
  • SALES: $2.140B  vs  $2.060B est

DUOL (Duolingo)

  • EPS: $0.57  vs  $0.27 est 
  • SALES: $167.600M  vs  $165.677M est

UBER (Uber)

  • EPS: $(0.32)  vs  $0.24 est 
  • SALES: $10.10B  vs  $10.11B est

SHOP (Shopify)

  • EPS: $0.20  vs  $0.17 est
  • SALES: $1.861B  vs  $1.845B est

OXY (Occidental)

  • EPS: $0.63  vs  $0.58 est
  • SALES: $5.98B  vs  $6.62B est

RIVN (Rivian)

  • EPS: $(1.45)  vs  $(1.15)
  • SALES: $1.204B  vs  $1.175B

RDDT (Reddit)

  • EPS: $(8.19)  vs  $(6.97) est
  • SALES: $242.963M  vs  $212.830M

DIS (Disney)

  • EPS: $1.21  vs  $1.10 est
  • SALES: $22.08B vs  $22.12B est

CELH (Celsius)

  • EPS: $0.27  vs  $0.18 est
  • SALES: $355.71M vs  $389.86M est

PLTR (Palantir)

  • EPS $0.08  vs  $0.07 est
  • SALES: $634M  vs  $615.8M est   

What’s Happening Now

AAPL (Apple)

Despite a record $110 billion buyback, Warren Buffett reduced Berkshire’s Apple stake by ~13%, indicating ongoing concerns over profitability, market position, and geopolitical risks. Apple is also up against a pocket of seasonal weakness that extends into next week.

This is an image of the AAPL seasonality chart.

SPY (S&P 500)

So far in 2024, market indexes seem to follow a consistent pattern: prices plummet during Tuesday’s trading session before rallying into the end of the week. While holding stocks over the weekend has been a coin toss, Mondays have generally closed in the green.

This is an image of seasonality charts for the SPY and QQQ.

HOOD (Robinhood)

Robinhood’s Q1 earnings surpassed expectations, but its crypto division received a concerning SEC notice that has rained on their parade. Amidst this, CEO & Co-founder Vlad Tenev has accelerated the size and pace of his stock sales—did he foresee issues?

This is an image of all Vlad Tenev's stock sales.

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 Newslette