US stock futures posted small moves lower on Monday, reflecting a successful week of significant market gains. Notably, the Dow Jones Industrial Average lost 29 points, while both S&P 500 and Nasdaq-100 futures They decreased by 0.2% and 0.4%, respectively. This was as a result of the Dow Jones and S&P 500 both mark their sixth weekly gain which together represents the longest duration for both indices in 2024. On Friday, the S&P 500 closed up 0.85% last week, while the Dow Jones appreciated 0.96% and the Nasdaq Composite gained 0.80%.
Earnings Season Intensifies: Can Results Drive Higher Profits?
The future of the American stock market towards the next steps will be in the hands of the companies that publish their earnings reports. Next week, as the third quarter earnings season continues, About 20% of S&P 500 companies will report their financial results. The first results have been positive (79% of the companies exceeded the expected figures); However, analysts suggest that earnings surprises have been smaller than expected and have held back the bulls.
Investors are waiting to see if the next group of companies can achieve more interesting results, as share prices are higher than expected values. Although at an all-time valuation level, the overall US stock market may be at an all-time high with upcoming quarterly earnings releases.
The latest market trend has given rise to a positive attitude, but some people still have some skepticism. Greater caution is spreading over issues such as excessively high valuations, geopolitical risks and the upcoming US presidential election. There would be a little more frequency in the market as long as a large part of the market S&P 500 Index will be published this week. Because investors have to interpret earnings news and wonder if the market's advance can keep pace, the market can be even more dramatic.
S&P 500 Chart Analysis
S&P 500 15-minute chart
based on the S&P 500 chartThe index has been very unstable in recent sessions. After a high of 5,878.46 on October 13, the market fell sharply to 5,764.76 on October 16. However, buyers emerged, pushing the index back above the 5,860 level by the end of the week, illustrating an ongoing fight between bulls and bears. emotions.
We have observed that each rise beyond the 5,870 resistance level has been hampered by selling pressure. Therefore, investors still seem wary. However, the index has shown positive behavior around the 5,840 level, where it has had strong support for some time. The confinement of the price action within this narrow range indicates the indecision of traders as they likely need additional indicators from the upcoming earnings reports.
Expectation: Range-bound trading ahead
In the next period, we are looking for the S&P 500 stay within this zone. The resistance level is 5,878 and support is around 5,840. However, we will not get any bullish signals that move the index away from this tight range unless a strong event comes from earnings or macroeconomic data. If developments go beyond forecasts from the company's latest results, then another wave of buying could push prices beyond 5,878 levels with a possible window to establish a new cycle high.
There is a lot of uncertainty looming in the future, and this will include geopolitical concerns. As a result, we anticipate that the market will be a bit choppy in the coming days as investors swallow the new facts.
Now is the time to be proactive. This would be the week in which the results report lights the spark, so focusing on action is the measure that will allow us to be close to the next step.
IAMGOLD Corporation (IAG) Stock Chart Analysis
IAG/USD 15-minute chart
when looking Iamgold Corporation (NYSE: IAG), we have seen tremendous growth in the share price in recent days. Between October 11 and October 17, the share price was close to $4.80 and $5.20 and remained virtually constant. However, we note that starting on October 18, there was a wild rally as the stock price jumped from $5.20 to over $5.80 and thus closing close to $5.99. This is a nearly 15 percent gain in a very short period of time, which is a potential breakout moment for IAG.
Bullish factors may have fueled the rise, including long-awaited strong earnings and a favorable market situation for both gold and news that significantly affects specific companies. The stock was around $5.96 the week of October 20. This shows that the price may have been consolidating, as after the price rose, investors had a breathing space to determine if the momentum would still be there.
If we continue to look closely at the significant levels, we reach the $5.60 range, which is quite viable. Apart from the $5.60 threshold, we may have another explosion to the upside if the stock price manages to break above the $6.00 level. On the other hand, if the stock experiences any difficulty in staying above $5.90, then it will be an indication of a downward price correction.
We will be more interested in watching the trading volume which could teach us if the uptrend persists or eases due to profit taking!
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