The U.S. corporate earnings season for the second quarter and first half of the year remains in focus. Yesterday, investors assessed results from The Home Depot Inc., the world’s largest home improvement retailer: revenue increased from $45.28 billion a year earlier to $47.86 billion, while earnings per share (EPS) rose from $4.58 to $4.92. Today, Lowe’s Companies Inc., another major retailer, is expected to report its results. Analysts forecast revenue to increase from $23.96 billion to $26.16 billion year over year, while EPS is projected to decline from $4.33 to $4.23.
In the U.S. debt market, the yield on widely followed 12-month Treasury securities rose today from 3.966% on Friday to 3.995%. The yield on benchmark 10-year U.S. Treasuries declined from 4.724% at the end of last week to 4.683%, while the 20-year yield fell from 5.302% to 5.261% and the 30-year yield decreased from 5.308% to 5.269%.
Among the strongest performers were Targa Resources Inc. (+7.13%), Insulet Corp. (+5.96%), Ulta Beauty Inc. (+4.75%), Intuit Inc. (+4.41%), and Monster Beverage Corp. (+4.09%).
The largest declines were recorded by Seagate Technology Holdings Plc. (–9.16%), Teradyne Inc. (–8.77%), Jabil Inc. (–8.45%), Corning Inc. (–7.68%), and Western Digital Corp. (–7.43%).
Support and resistance levels
On the daily chart, the instrument remains in a corrective phase while attempting to move toward the upper boundary of the ascending channel, currently defined by the 7900.0–7300.0 range.
Technical indicators continue to generate a stable buy signal: the fast EMAs of the Alligator indicator remain above the slow line, while the AO histogram is forming corrective bars in positive territory.
Resistance levels: 7750.0, 8060.0.
Support levels: 7610.0, 7350.0.
S&P 500 trading scenarios and price outlook
Long positions may be opened after the price rises and consolidates above 7750.0, with a target at 8060.0. Stop-loss: 7600.0. Time horizon: 7 days or more.
Short positions may be opened after the price declines and consolidates below 7610.0, with a target at 7350.0. Stop-loss: 7750.0.
Scenario
| Timeframe | Weekly |
| Recommendation | BUY STOP |
| Entry point | 7750.0 |
| Take Profit | 8060.0 |
| Stop Loss | 7600.0 |
| Key levels | 7350.0, 7610.0, 7750.0, 8060.0 |
Alternative scenario
| Recommendation | SELL STOP |
| Entry point | 7610.0 |
| Take Profit | 7350.0 |
| Stop Loss | 7750.0 |
| Key levels | 7350.0, 7610.0, 7750.0, 8060.0 |
