S&P 500 Outlook: Corporate Earnings in Focus as Fed Enters Blackout Period

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S&P 500 continues bullish push as key resistance comes into view. Federal Reserve enters blackout period ahead of next week’s meeting. Mega-cap tech earnings likely to set the tone for risk assets this week.

Following a strong move higher to close out last week, S&P 500 futures have continued to march on toward the monthly highs around 3820. The 3802 level continues to offer some significant resistance, as it represents the 61.8% retrace of the advance off the March 2020 lows. The monthly high around 3820 also coincides with the 38.2% retracement of the pullback off the August highs, which sits at 3817. So far this zone above 3800 has held firm.

If tech earnings are able to surpass market expectations, ES may look to advance up to the 3902-3914 area which is yet again an area of fib confluence. Should this earnings period prove to be a mixed bag, the direction for equities may rely solely on the guidance given by these major companies. In times of heightened volatility, traders should remember to remain nimble. As we have seen in FX, rapid moves can develop out of nothing.

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