23 Oct 2022 SPX Weekly - Mega Earnings

Accuracy: 36/42 (85.71%)

SPX above 3489 - Correct

Last Week

I put my prediction on not going lower after that fib 61.8% close on the Friday before. We immediately got a good run up on the start of the week followed by some slow pull back and crazy Friday rally before closing of the week.

Lets take a look at how it looks like on the daily chart.

The daily candles and price action from last few weeks has been rejecting the 3600 area pretty strongly. Not forgetting we're still on the downtrend. We want to see the downtrend resistance on the top being breached then it would be one of the very early signal of potential trend change.

Next Week

Looking at the daily candle, I can't avoid seeing this pattern on this downtrend. Every time we have a potential ABCD down move, we find some sort of support and rally towards the uptrend resistance. The only difference is it gets wider and wider.

This pattern definitely makes me bias on being bullish on the shorter term at least within next 1-2 weeks.

Economic Calendar

For the economic events next week, mostly are pretty minor relative to what we had in the past 2 weeks. And definitely relatively insignificant for what we going to have next week as I mentioned in the title of the post.

Mega Earnings

Before I start, I just suddenly thought of looking back at my previous post of mega earnings.

• This is the post I did on making prediction on the mega earnings in July 2022 - https://www.vocsong.com/24-jul-2022-spx-weekly-giant-tech-earnings/
• This is the post of the week after the mega earnings in July 2022 - https://www.vocsong.com/31-jul-2022-spx-weekly-what-goes-up-must-come-down/

Simple summary towards the July earnings is it was a super bullish reap upwards.

All eyes on the 5 biggest mega cap for this coming week. Not forgetting there's plenty of pretty large market cap companies also having their earnings.

This is definitely the key catalyst to move the market next week but we wouldn't know if it'll be good or bad news from these companies.

If I were to pick sides (up/down), I'm still bias to stick to the technical analysis above. Which put the story together as these catalyst will be the cause of the short term rally.

Prediction

Would put this week's prediction to be the main area of support around 3560.

SPX Above 3560