Stock Market Analysis Today [2024.07.01]: S&P 500 Back on Bullish Trend, Stocks To Watch Today.

Hi there, Welcome to Stock Market Analysis Today!

• S&P 500: The S&P 500 is in an uptrend, trading around its all-time high of 550. It’s consolidating, with support around 542.50 or 540. Expect a rise if it breaks 550.
• Consumer Staples Sector (XLP): In an uptrend with a sideways medium-term trend. If it breaks below support, it could crash, but it’s more likely to pull back and rise.
• Energy Sector (XLE): In a downtrend but broke above resistance. The price is above the trend line, indicating a potential rise unless it falls back into the channel.
• Materials Sector (XLB): Moving sideways or down. Near major support, it could confirm a downtrend if it breaks, but likely to climb to resistance.
• Industrials Sector (XLI): Consolidating near support. Expect a pullback and rise, but a break below support could signal a downtrend.
• Consumer Discretionary Sector (XLY): Consolidating around resistance. On the 1-hour chart, there’s an uptrend with the price pulling back up from the trend line. Watch for breakouts.
• Healthcare Sector (XLV): Consolidating near resistance. The price is pulling back up from support with high volume. Expect it to rise to the resistance or fall further if it breaks support.
• Financials Sector (XLF): Broke below support, indicating a potential fall, but it’s pulling back up. The trend is still up if the price holds above the trend line.
• Technology Sector (XLK): In an uptrend, pulling back from support. If it reaches resistance today, expect a pullback, but a break through either level will set the direction.
• Communications Sector (XLC): In an uptrend and at high levels. The price is pulling back from its high, nearing support. Expect it to bounce up or fall further if it breaks support.
• Utilities Sector (XLU): In a downtrend, heading for the next support after breaking the previous one. The trend may continue down, but watch for reversals.
• Real Estate Sector (XLRE): Trending sideways, near resistance. The price is pulling up from support, likely to rise to resistance before pulling back again.

Stock Market Events Today

These events include important news that could impact the stock market, macroeconomic reports, and economic indicators. For more details, you can check the bloomberg calendar & yahoo finance.

• At 10:00 AM ET, the ISM Manufacturing PMI will be released. The forecast is 49.2, and the previous value was 48.7.

Stocks with Earnings:

S&P 500

Looking at the S&P 500, it’s in an uptrend and trading around its all-time high level of 550. It recently retested that area again.

On the 1-hour chart, you can see the price is consolidating. After reaching the resistance level of 550, it pulled back and is now heading for support around 542.50 or 540. We can expect the price to pull back from either of these support levels and continue to go up. If the price breaks the resistance at 550, it will continue to rise.

Last week, it looks like the big players MSFT, AAPL, GOOG, META, AMZN, and NVDA all took a hit. The energy sector did well, while the communication sector took a big hit. Let’s check the actual numbers to see what happened.

Consumer Staples Sector(XLP):

Looking at the Consumer Staples Sector, it’s in an uptrend, but there’s a sideways trend happening in the medium term.

On the 1-hour chart, you can see the price is at a crucial level. If it breaks below this support, we might see the Consumer Staples sector crash. However, it’s more likely to pull back from this level and go up today.

Energy Sector(XLE):

Looking at the energy sector, it’s in a downtrend, but it seems like the price has broken above the resistance.

On the 1-hour chart, the price is above the trend line. We can expect the price to continue going up from this level since the trend has changed to an uptrend. However, if the price drops back inside the channel today, it was a fake breakout.

Materials Sector(XLB):

Looking at the materials sector, it’s either moving sideways or in a downtrend.

On the 1-hour chart, you can see that the price is near the major support line. If the price breaks below this support, it will confirm the downtrend, and the price will fall. However, if the price pulls back from this level, which is more likely, we can see it climbing to the resistance shown on the chart.

Industrial Sector(XLI):

The Industrials sector is consolidating, and the price is now close to the support level.

On the 1-hour chart, if the price falls to the support level, we can expect a pullback and the price to go up. It might also start rising from where it is now, as that level acts like support too. However, if the price breaks below the support, the trend will change to a downtrend.

Consumer Discretionary Sector(XLY):

The consumer discretionary sector is also consolidating, and the price is around the resistance level.

On the 1-hour chart, you can see an uptrend, with the price pulling back up from the trend line. We can expect the price to continue rising to the resistance level today. Watch out for breakouts.

Healthcare Sector(XLV):

The healthcare sector is also consolidating, and the price is currently near the resistance level.

On the 1-hour chart, you can see the price pulling back up from a support area with high volume. We can expect the price to continue rising to the resistance, possibly breaking it and moving to the main resistance level. However, if the price breaks below the support, it could fall further.

Financials Sector(XLF):

Looking at the financial sector, it broke below the support, indicating the price should fall. However, the price is now pulling back up to that level again.

On the 1-hour chart, you can see that the last two lows show the latest one is higher than the previous one, indicating the trend is still up. If the price goes to the trend line again, we could expect a pullback from there, but there is also a chance for the price to drop from here.

Technology Sector(XLK):

The technology sector is in an uptrend and is now pulling back from a support level, indicating it could continue going up.

On the 1-hour chart, you can see the price pulling up. If the price reaches the resistance level today, we can expect a pullback from there. Similarly, if the price goes down to the support level, a pullback could also occur. However, if the price breaks through either level, that’s the direction it will likely move next.

Communications Sector(XLC):

The communications sector is in an uptrend and is currently at its high levels.

On the 1-hour chart, you can see the price pulling back from its high level and nearing a support level. We can expect the price to bounce from this support and continue going up. However, if it breaks below this support, the price could fall further.

Utility Sector(XLU):

The utilities sector is in a downtrend. It broke the support level and is now heading for the next support.

On the 1-hour chart, the price is trending down. We can expect this trend to continue until the next support level. However, the price could also start going back up at any moment, so watch for reversal signals. If the price breaks the resistance, we can expect it to keep rising.

Real Estate Sector(XLRE):

The real estate sector is trending sideways, and the price is near a resistance level as shown on the chart.

On the 1-hour chart, you can see the price pulling up from a support level and heading toward resistance. We can expect the price to continue rising to the resistance before possibly pulling back again.

Stocks to Watch Today

NVDA

Performance: NVIDIA is a leader in graphics processing units (GPUs) and AI technology.

Reason to Watch: Its dominance in the GPU market and innovations in AI and data centers make it a key stock. NVIDIA’s continuous advancements in technology and strong market position drive its potential for future growth.

Price Action: NVDA is consolidating after pulling back from support. A breakout from this consolidation will determine the future trend, so watch for breakouts.

MSFT

Performance: Microsoft continues to be a key player in the tech industry.

Reason to Watch: Its advancements in AI and cloud computing through its Azure platform are significant. Microsoft’s investment in AI and integration of AI models into various services highlight its potential for sustained growth and innovation​. also recently attackers stole data let the stock crashing.

Price Action: After an uptrend, the price broke support due to an attack by Russian hackers who reportedly stole customer data. If the matter is resolved, we can expect the price to bounce back to the uptrend. If not, the price could crash to the 432 level.

ANET

Performance: Arista Networks has shown a remarkable one-year return of 121.80%. This performance highlights its consistent growth in the technology sector.

Reason to Watch: Its strong performance and strategic position in the tech industry make it a compelling stock to monitor. Arista Networks’ innovative network solutions and consistent growth contribute to its strong market presence.

Price Action: The price broke above the resistance level, indicating it should continue to go up. Watch for the price breaking below this line again.

TSLA

Performance: Tesla continues to be a major player in the electric vehicle (EV) market.

Reason to Watch: With its ongoing innovations in EV technology and energy solutions, Tesla remains a stock to watch. Recent advancements in battery technology and expansion into new markets contribute to its growth potential.

Price Action: After consolidating and trading low for a while, the price is now reaching a resistance level. If the price breaks above this resistance, we can expect it to continue going up.

CRWD

Performance: CrowdStrike is a leader in the cybersecurity sector.

Reason to Watch: Its AI-native cybersecurity solutions and robust financial performance make it a strong contender. With the increasing importance of cybersecurity, CrowdStrike’s growth potential remains high, driven by its innovative and reliable security platforms

Price Action: The price is in a consolidation phase. A breakout at these levels will determine the future trend, so watch for breakouts.

STZ

Performance: Constellation Brands is set to report its fiscal first-quarter results this week.

Reason to Watch: Expected strong earnings growth driven by solid beer sales makes it a stock to monitor. The company’s ability to perform well in the beverage sector adds to its attractiveness

Price Action: The price is near a support level, and there are reversal signals. Additionally, the premarket has gapped up, so we can expect the price to move toward the resistance area.

HD

Performance: Home Depot is benefiting from long-term trends in the housing market.

Strategic Move: Its recent $18 billion acquisition of SRS Distribution, a key supplier for professional contractors, is expected to significantly enhance its presence in the specialty trade sector. This acquisition brings in over $10 billion in annual sales, positioning Home Depot for continued growth in home improvement and construction sectors

Price Action: The price is pulling back up from the support and heading higher, likely trying to fill the gap. However, it’s around a key level, so we could also see a pullback from here.

Conclusion & Disclaimer

Please provide your feedback on how we can improve this article. Thank you!

We discussed these sectors and markets because when the entire market or sector goes through certain movements, most of the stocks within that market will also experience similar movements. So, by understanding what the market is doing, you can conduct your own analysis on specific stocks.

These analyses are here to help you understand how to analyze the market. They’re not about giving buy or sell signals. It’s simply about observing price action market behavior. I don’t recommend when to buy or sell because trading doesn’t work that way. You need a strategy to guide your decisions about when to enter or exit positions. That’s the key to making consistent profits in the financial markets over time.

The information provided in this market analysis is for educational and informational purposes only. It should not be construed as financial advice or a recommendation to buy, sell, or hold any securities or investments.

All investments involve risk, and past performance is not indicative of future results. The analysis provided may not be suitable for all investors and should be used at their own discretion.

Readers are encouraged to conduct their own research.

Trading and investing in financial markets carry inherent risks, including the risk of losing invested capital. It is important to carefully consider your investment objectives, risk tolerance, and financial situation before making any investment decisions.

GOOD LUCK✌!!!