U.S. Markets Open Week Mixed Ahead of Fed Chair Powell Congressional Testimony

by Vlad Karpel

Latest stimulus package works its way through Congress

Following a mixed performance last week, U.S. benchmarks started the week similarly with the Dow nearing record territory and closing in the green while the S&P and Nasdaq finished in the red. Long-term U.S. Treasury yields rose as the latest stimulus package works its way through Congress.

Earnings season remains in focus

Earnings season remains in focus this week with Home Depot, Square, Nvidia, Airbnb, and DoorDash set to release quarterly reports while several key economic reports are due to release throughout the week. January income, consumer spending, core inflation, capital good orders, and more are set to release this week while on Tuesday Fed Chair Jerome Powell is scheduled to testify, providing additional insight on current market conditions. Goodyear Tire saw shares boosted following its acquisition of Cooper Tire; Gold and Oil shares also saw positive movement to start the week. Globally, Asian markets traded to mixed results while European benchmarks closed modestly lower.

SPY next level of support is set at the 50-day moving average, $364-$370

Until an additional breakout is maintained, our models are projecting SPY to trade in the range of $364-$390. We continue to see a strong rotation from growth to value stocks and it is our opinion that the market could be prone to further corrections. The next level of support set at the 50-day moving average, $364-$370. We encourage all market commentary readers to maintain clearly defined stop-levels for all positions. For reference, the SPY Seasonal Chart shown below:

For reference, the S&P 10-Day Forecast is shown below:

Using the “^GSPC” symbol to analyze the S&P 500 our 10-day prediction window shows a near-term mixed outlook. Prediction data uploaded after the market closes at 6 p.m. CST. Today’s data is based on market signals from the previous trading session.

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Tuesday Morning Featured Symbol

Our featured symbol for Tuesday is CF Industries Holdings (CF). CF is showing a steady vector in our Stock Forecast Toolbox’s 10-day forecast.

The stock is trading at $46.87 with a vector of +0.53% at the time of publication.

10-Day Prediction data uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.

Note: The Vector column calculates the change of the Forecasted Average Price for the next trading session relative to the average of actual prices for the last trading session. The column shows the expected average price movement “Up or Down”, in percent. Trend traders should trade along the predicted direction of the Vector. The higher the value of the Vector the higher its momentum.

*Please note: At the time of publication Vlad Karpel does have a position in the featured symbol, CF. Our featured symbol is part of your free subscription service. Not included in any paid Tradespoon subscription service. Vlad Karpel only trades his money in paid subscription services.  If you are a paid subscriber, please review your Premium Member Picks, ActiveTrader, or MonthlyTrader recommendations. If you are interested in receiving Vlad’s picks, please click here.


Oil

West Texas Intermediate for Crude Oil delivery (CL.1) priced at $58.39 per barrel, up 0.05% at the time of publication.

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Looking at USO, a crude oil tracker, our 10-day prediction model shows positive signals. The fund is trading at $38.28 at the time of publication. Prediction data uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.


Gold

The price for the Gold Continuous Contract (GC00) is up 0.36% at $1844.20 at the time of publication.

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Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows mixed signals. The gold proxy is trading at $172.71 at the time of publication. Vector signals show +0.13% for today. Prediction data uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.


Treasuries

The yield on the 10-year Treasury note is flat, at 1.168% at the time of publication.

The yield on the 30-year Treasury note is down, at 1.956% at the time of publication.

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Using the iShares 20+ Year Treasury Bond ETF (TLT) as a proxy for bond prices in our Stock Forecast Tool, we see negative signals in our 10-day prediction window. Prediction data uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.


Volatility

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The CBOE Volatility Index (^VIX) is $21.99 at the time of publication, and our 10-day prediction window shows mixed signals. Prediction data uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session


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