S&P500 Bearish Close, Google to the Rescue


S&P500 Index ETF – SPY

The news of the possible economy reopening had the futures pointed at over 1% gap up open, as traders know gap up = sell and gap down = buy, depending on the momentum and the news. Today the traders went full bearish after a nice 5 min gap up candle, it looked to be filling the gap but went much lower, full bear force came out. NASDAQ traded low on lower volume across the exchange today, as most traders expected lower than predicted earnings for tech giants. Microsoft, Aaple, Amazon and Facebook all report this week.


SPY hourly chart continues to push higher on trend however, closing red for the first time in the last four trading sessions. Momentum seems to be leaving and the volumes decreasing as the stock continues to form the bearish wedge moving up. Hourly RSI cooled off from the gap up overbought zone into RSI of 54, historically a decent bounce point. MACD showing a short term bearish spill over. Stoch has plenty of room to go up and down undecided.

It seems tho at the time of writing, Google beating the analysts prediction on their earnings have popped NASDAQ right back up in the after hour trading from the losses it suffered on the day. SPY will likely continue the upward trend with the large caps pushing if they continue to beat earnings.

S&P500 was lead by the small caps again, small caps added gains from yesterday while large caps lost. Small caps rose 1.64% for the day and S&P500 ended the day at -0.3% getting dragged by the tech giants.

The first Mega cap stock Google (Alphabet the parent company) to reported earnings after the bell today. Google beat the analysts expectations.

Here is Google’s earnings summary (Source: CNBC)

  • Earnings: $9.87 per share, adjusted
  • Revenue: $41.16 billion
  • Cloud revenue: $2.78 billion
  • YouTube advertising revenue: $4.04 billion
  • Traffic acquisition costs: $7.45 billion

Earnings Schedule

  • April 28: Google
  • April 29: Facebook, Tesla, Boeing, Microsoft
  • April 30: Amazon, Apple

The Fed Meeting

April 29, 2020 Wednesday

Rising Wedge (Bearish)

Wedge Definition

SPY Stock Data as of April 27

  • Prev. Close: 282.97
  • Day’s Range: 284.62 – 288.27
  • ROI (TTM): – 0.46%
  • Open: 285.1252 wk
  • Range: 218.26 – 339.08
  • Dividends (TTM): 4.03
  • Volume: 77,896,608
  • Market Cap: 262.15B
  • Dividend Yield: 2.05%
  • Average Vol. (3m): 170,163,846
  • Total Assets: 167.65B
  • Beta: 1
  • 1-Year Change: – 2.17%
  • Shares Outstanding: 920,382,116
  • Asset Class: Equity

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