Zacks Analyst Blog Features CrowdStrike, Splunk, SoFi, ACM Research, and Twilio
For immediate release
Chicago, IL – February 9, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: CrowdStrike CRWD, Splunk SPLK, SoFi SOFI, ACM Research ACMR, and Twilio TWLO.
Here are the highlights from Tuesday’s analyst blog:
A technical breakdown ahead of the January CPI reading
The S&P 500 has remained in a range between 4450 and 4590 (hovering around 4500) since breaking out of correction territory in late January, as market participants sit back and wait for the next significant macro catalyst. Thursday’s inflation figure (2/10) appears to be next in line with evolving market economic reports that will reveal the extent and concentration of Omicron’s inflationary impact.
Volumes have been gradually declining since the start of February as nervous investors set their expectations for the flood of quarterly reports hitting the wire before and after each trading day. After a scorching January jobs report, the January CPI report and its monetary implications will be the market’s main focus in this week’s index-level action.
This inflation indicator should further tighten credit market expectations (5-6 Fed Funds hikes in 2022) and hopefully provide informational relief in the more inhibited rate-sensitive spaces of the market (assuming that the CPI data does not illustrate anything very unexpected). Expectations versus reality are what to focus on, not scare headlines, which I can almost guarantee we’ll see regardless of the outcome.
Fear, uncertainty and doubt (FUD) surrounding inflation, monetary policy and their combined implication on sustained demand has kept the S&P 500 within a technically bound trading range.
When using macro technical analysis in the US stock market, it is prudent to do so with the S&P 500 futures instead of the spot index due to its 24-hour trading (Sunday evening to Friday afternoon), making it the preferred US equity trading tool for the global market. professionals. In other words, it’s the industry standard for stock charters.
Something to remember while reading: The Fibonacci Extension Levels (downward price targets) shown above represent entry points, while the Fibonacci Retracement Levels (upward price targets) provide technical exit targets.
Last Monday (1/31) started with a tech-fueled breakout to wrap up the exceptionally volatile January trade on a bullish note, pushing the S&P 500 comfortably out of correction territory (-10% downside threshold) and back above its 200-day moving average (blue circle).
The week peaked around Wednesday’s (2/2) closing bell (red circle) in Meta’s post-earnings meltdown that dragged the entire market down with it. Amazon’s (AMZN) unexpected profit explosion, along with January’s scorching jobs report, put a band-aid on that haemorrhage on Friday morning.
The capricious price action kicks off this second week of trading in February. With a slew of earnings across all sectors released throughout the week and the January CPI report boosting performance on Thursday morning, we are set for another crazy week of market action.
The most important technical levels in the S&P 500 (futures) to watch amid this week’s likely volatility will be the downside 200-day MA, which sits just above 4450. A break below that could mean that the market is moving back into correction territory or, even worse, into a bear market (-20% decline from recent highs).
A break of the 50-day MA at 4620 will be the bullish breakout signal to watch if this week’s data is favorable. First, we will need a catalytic push above last week’s fib linked high around 4590. This catalyst could come in a data relief rally after the January CPI release. Thursday morning.
I’m looking to buy growth ahead of this read, as this data will likely lift FUD pressures surrounding next-gen innovators.
Stocks I buy in print: CrowdStrike, Splunk, SoFi, MCA Research and Twilio.
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ACM Research, Inc. (ACMR): Free Stock Analysis Report
Splunk Inc. (SPLK): Free Stock Analysis Report
Twilio Inc. (TWLO): Free Stock Analysis Report
CrowdStrike (CRWD): Free Stock Analysis Report
SoFi Technologies, Inc. (SOFI): Free Stock Analysis Report
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