Successful recovery on indices, which started at the end of January, is taking a break. We are deep in the earning season, which is why American companies lost steam. I mean, most of the companies crush estimates (which helped the recent rally), but one did not.
This company was Meta Platforms (NASDAQ:FB), which heavily disappointed traders on Wall Street. It had a more significant impact on tech-heavy NASDAQ, where Meta weights more, but we could also see an impact on today’s hero – S&P 500.
Yesterday’s session left on the S&P 500 chart a Doji (yellow), which is a candle of hesitation and a possible start of a correction. What is important is also the place where this Doji is present.
It is not a coincidence that it is on the crucial mid-term horizontal resistance around 4590 (blue), which served as a support at the end of December and January. From the technical point of view, this is a good place to correct.
So, the base scenario, for now, is a slight movement to the downside, but the sentiment remains positive in the long term. In our view, we see the possible breakout of the blue resistance and a further attack on the new all-time highs.
