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,
- HOOD received a Wells Notice
- Unemployment ticked higher
- OpenAI search product to rival Google
- Apple powers AI servers with in-house chips
- The great Jim Simons passed away
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.
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.
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?
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
