30 Oct 2022 SPX Weekly - FOMC

Accuracy: 37/43 (86.04%)

SPX above 3560 - Correct

Last Week

The bullish run aligns with my prediction even though most of the mega cap earnings went pretty bad.

Above is the finviz 1 week performance map, META dropped 23.7%, AMZN dropped 13.33%, GOOGL -4.83%, MSFT -2.58%. Despite all these bad earnings catalyst, SPX went up about 4%.

From the chart above, we can see majority of the market goes up more than 5% with the biggest box (market cap) AAPL leading the market upwards after its earnings last Thursday after close.

On the daily candle chart, SPX went up all the way closing right at 3900 area. This area marks several potential resistance and support.

Zoom in to 30min chart, we currently sit on a very recent short term uptrend with the recent bounce at 3750 area. This area will be next key support to look out for if this uptrend reverse.

Next Week

Drew 2 scenarios in green and red. I would expect some consolidation around the current area of 3900 after such a strong run on Friday. Both scenario seems to suggest similar with 3750 as a decent support to lean on.

Economic Calendar

Basically all eyes on FOMC once again, Wed during regular market hours 2:00PM.

Personal take? If interest rate decision comes in expected, we shouldn't see too much volatility. Might even have more upside opportunities.

Earnings

Not to forget, although most of the mega cap earnings are over, there's still quite a lot large cap companies earnings upcoming.

Unless anything really striking happens in any of these earnings, I think the key catalyst is still FOMC.

Prediction

Continue to follow the short term uptrend.

SPX above 3750