Current trend

The S&P 500 index of the American economy is being adjusted at 5259.0, and neutral expectations from the quarterly reports of component companies cannot keep its quotes from falling.

Forecasts regarding the financial statistics of the biotech company Amgen Inc. suggest revenue growth to 8.35 billion dollars from 7.45 billion dollars after 7.0 billion dollars a year earlier, as well as an increase in earnings per share (EPS) from 3.96 dollars to 4.98 dollars, which is slightly below 5.00 dollars. In turn, construction equipment manufacturer Caterpillar Inc., according to preliminary estimates, may record revenue of 16.76 billion dollars, higher than 15.80 billion dollars in the previous quarter, but below 17.3 billion dollars a year earlier, and earnings per (EPS) share are likely to be lower than both 5.55 dollars a year earlier and 5.60 dollars in the previous quarter, amounting to only 5.54 dollars.

The most active reaction to the events of recent days in the American market was shown by bonds: the yield rate on 10-year securities fell to 3.815% from 4.138%, on 20-year — to 4.205% from 4.502%, and on 30-year — to 4.104% from 4.312%.

The growth leaders in the index are Kellanova Co. ( 16.23%), Tyson Foods Inc. ( 2.09%), AMD Inc. ( 1.75%), Constellation Energy Corp. ( 1.73%).

Among the leaders of the decline are Caesar Entertainment Corp. (-6.90%), Walgreens Boots Alliance Inc. (-6.62%), Etsy Inc. (-6.57%).

Support and resistance

On the D1 chart, the S&P 500 quotes are working out a signal from the "head and shoulders" reversal pattern with the "neck" line in the area of 5400.0.

Technical indicators hold the sell signal, which has begun to strengthen: the fast EMAs on the Alligator indicator move away from the signal line, and the AO histogram, being in the sales zone, forms corrective bars.

Support levels: 5220.0, 5090.0.

Resistance levels: 5300.0, 5450.0.

Trading tips

If the asset continues to decline and the price consolidates below the support level of 5220.0, sell positions with the target of 5090.0 will be relevant. Stop-loss – 5300.0. Implementation period: 7 days and more.

In case of continued growth of the asset, as well as price consolidation above the resistance level of 5300.0, buy positions with the target of 5450.0 may be opened. Stop-loss – 5220.0.