High-Level Bullish Digestion Ahead Of Big-Tech Earnings

Tuesday, October 25, 2022-- Mptrader Pre-Market Update: The Equity Futures indices continue to exhibit a strong relative performance despite their 9% (ES) advance since the 10/13 low and the 5% gain just from last Friday's "WSJ Fed-Blink" pivot low. 

At the moment, my near-term work argues that ES is in a high-level bullish digestion period and pattern (see my attached ES Chart) ahead of this eve's BIG TECH earnings reports from MSFT and GOOG (See my attached Charts below). As long as any forthcoming weakness in ES is contained in or above key nearest support from 3777 down to 3736.50, my pattern work off of the 3502 low (10/13) argues for another upleg that projects to 3880 to 3900 next. 

In the event of a sharp decline that does violate 3736.50, more consequential resistance resides at the up-turning 20 DMA, now in the vicinity of 3700. 

As for MSFT and GOOG, both names report earnings after the close. MSFT's current setup is positive, and poised to challenge key 6 week resistance from 247.50 to 250.50, which if hurdled and sustained-- especially in reaction to earnings, will trigger higher projections to 269 to 277 thereafter. Conversely, weakness that breaks nearest support at 239-240 will weaken the 6-week setup... Last is 247.75...

GOOG also has carved out a 6-week accumulation-base formation, with the price structure pushing up towards a challenge of the breakout plateau at 104.25-105.25, which if satisfied, will trigger higher projections to challenge more consequential resistance at 108.50 to 113.00. Conversely, a negative reaction to earnings that breaks and sustains beneath 100 will weaken the current setup... Last is 103.16

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!