The S&P 500 Appears To Be Headed To Re-Test the All Time High
Jason Lubin October 12, 2020 4:10 PM
Big earnings releases this week include UNH, ISRG and SLB.
On Wednesday, UnitedHealth Group (UNH) is expected to announce third quarter EPS of $3.08 compared to $3.88 a year ago on revenue of $63.9 billion vs $60.4 billion last year. The Co is a private health insurance provider and on October 7th, the Co launched The HERO Program (Helping Employees Receive Organs), which can provide up to $12,000 in financial support to individuals outside UnitedHealth Group who donate specific organs. From a technical point of view, the RSI is above its neutrality area at 50. The MACD is above its signal line and positive. The configuration is positive. Moreover, the stock is above its 20 and 50 day MA (respectively at $306.05 and $309.6). We are looking at the final target of $347.00 with a stop-loss set at $306.00.
On Thursday, Intuitive Surgical (ISRG) is likely to unveil third quarter EPS of $2.05 vs $3.43 last year on sales of $970.5 million compared to 1.1 billion a year ago. The Co develops robotic systems for the medical industry and on September 28th, Rebotix Repair filed a lawsuit against the Co in the Florida federal court regarding one of its medical devices. From a chartist's point of view, the RSI is above its neutrality area at 50. The MACD is above its signal line and positive. The configuration is positive. Moreover, the stock is trading above both its 20 and 50 day MA (respectively at $689.36 and $695.8). We are looking at the final target of $784.00 with a stop-loss set at $663.00.
On Friday, Schlumberger (SLB) is awaited to post third quarter EPS of $0.13 compared to $0.43 a year ago on revenue of $5.4 billion vs $8.5 billion last year. The Co is the world's largest supplier of oil products and services, and on September 27th, the Co signed a memorandum of understanding with Qatar Navigation for a 5-year joint development project, according to Bloomberg. The expected move based on front-month options is 9.3%, the last time the Co reported earnings the stock rose 0.9%. Technically speaking, the RSI is below 50. The MACD is below its signal line and negative. The configuration is negative. Moreover, the share stands below its 20 and 50 day MA (respectively at $16.92 and $18.26). We are looking at the final target of $13.30 with a stop-loss set at $17.00.
Looking at the S&P 500 CFD on a 30 minute chart, the index has continued to rise and broken to the upside of all three levels that were outlined last week. The index appears to be using its 20-period simple moving average (SMA) as rough support. Momentum is strong and price will likely continue to advance. The Index's next targets are 3535.00 and 3558.00. If price can manage to break above these two levels then price could reach for the final target and all-time high of 3587.00. If the index can get above 3587.00, then it would be an extremely bullish signal that would likely lead to new record highs being made. On the other hand, if price slips then traders should look to the 3486.00 support level for a bounce. If price falls below 3486.00, then a rebound could occur off of the 3454.00 level. If price drops below 3454 then traders should be cautious.
Source: GAIN Capital, TradingView