The S&P 500 futures are trading near
neutral at 5,860 points this week, staying close to the recent all-time high of
5,881 points. This proximity signals ongoing market strength and suggests the
potential for the index to push towards its extreme targets of 6,100-6,200
points. With only a few weeks left before the U.S. presidential elections on
November 5, the market seems to have enough momentum, largely supported by
confidence in strong Q3 corporate earnings reports.
Tesla (TSLA) will report earnings this week,
following Netflix’s (NFLX) positive results last week. Wall Street expects
generally favorable outcomes from Tesla, though there is some concern regarding
its robotaxi segment. The aggressive push for vehicles without steering wheels
or brake pedals raises questions about market demand and the supporting
infrastructure needed for such a venture. Other major tech giants, including
Alphabet (GOOG), Microsoft (MSFT), Apple (AAPL), and Amazon (AMZN), are
scheduled to report next week, keeping the bullish sentiment alive.
No significant macroeconomic data releases are
expected this week, though manufacturing and services PMIs for October will be
released in the Eurozone, the U.K., and the U.S. Additionally, several central
bank officials, including ECB President Christine Lagarde, BoE Governor Andrew
Bailey, and Federal Reserve officials, are expected to speak this week,
potentially influencing market sentiment ahead of the U.S. elections.
Investor confidence remains high, with the
SPDR S&P 500 ETF Trust (SPY) reporting $9.5 billion in net inflows last
week, signaling large bets on the U.S. tech sector. Overall, the market has
recovered $19.8 billion in inflows, reinforcing the strength of the rally.
From a technical
standpoint, the S&P 500 has achieved its initial target of 5700-5800
points. Having passed the potential reversal zone, the index is on track toward
the 6100-6200 range. The next resistance lies at 5900-5920 points, with support
at 5780-5820 points.
In the commodities market,
Brent crude oil retreated almost to the support at $70.00-72.00 per barrel and
seems to be recovering. Next week both resistance and support levels will slide
lower. This may help prices to experience less pressure.
Gold prices have
passed the resistance at $2,710-$2,730 per troy ounce. If no significant
reversal occurs, gold could continue its rise towards extreme targets of
$2,850, with potential highs of $3,200-$3,300 per ounce.
In the currency
market, the EURUSD is forming a reversal to the upside. The pair is trading at
1.08500, signalling a potential correction of the Greenback. If the pair
accelerates to the upside it is likely to return to 1.10000-1.11000 range.