Current trend

The leading index of the American economy, the S&P 500, is adjusting at 5643.0: positive expectations from the quarterly reports of component companies are supported by a correction in the bond market.

So, the leader of the US insurance market, UnitedHealth Group, can record revenue of 98.72 billion dollars, exceeding 92.9 billion dollars shown last year, and earnings per share (EPS) are projected at 6.67 dollars after 6.14 dollars earlier. In turn, Bank of America Corp.'s revenue is likely to be 25.24 billion dollars, compared to 25.2 billion dollars earlier, and EPS — 0.7971 dollars, below 0.8800 dollars a year earlier. Morgan Stanley Banking Holding is preparing to record revenue at 14.32 billion dollars compared to 13.50 billion dollars shown in Q2 2023, while EPS are expected to adjust to 1.65 dollars after 1.24 dollars in the previous period.

The situation on the bond market also contributes to the upward dynamics of S&P 500 quotations: the rate on three-month bills fell to 5.195% from 5.230% earlier, and six-month securities were placed at 4.985%, below previous 5.080%.

The growth leaders in the index are Axon Enterprise Inc. ( 5.46%), Paycom Software Inc. ( 5.17%), APA Corp. ( 4.97%), Capital One Financial Corp. ( 4.48%).

The AES Corp. (–10.03%), First Solar Inc. (–8.50%), CenterPoint Energy Inc. (–5.67%) stands out among the leaders of the decline.

Support and resistance

On the D1 chart, the index quotes are heading towards the resistance line of the ascending channel with the boundaries of 5800.0–5640.0.

Technical indicators maintain a stable buy signal: fast EMAs on the Alligator indicator are fixed above the signal line, and AO histogram, being in the buy zone, forms corrective bars.

Support levels: 5580.0, 5325.0.

Resistance levels: 5670.0, 5895.0.

Trading tips

In case of continued growth of the asset, as well as price consolidation above the resistance level of 5670.0, buy positions with the target of 5895.0 will be relevant. Stop-loss – 5600.0. Implementation period: 7 days or more.

In the event of a reversal and decline of the asset, as well as price consolidation below the support level of 5580.0, sell positions with the target of 5325.0 can be opened. Stop-loss – 5700.0.