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SPX, WMT Analysis and Talking Points
- Walmart beats expectations
- S&P 500 Grinds Higher in Low Vol Environment
Walmart’s slew of results beat estimates, with the retailer beating consensus on both earnings per share and sales. In addition, the company expects a smaller decline in annual sales than previously forecast. Recall that the retailer announced a profit warning last month as rising prices pushed consumers to rein in discretionary spending.
Even though the S&P 500 is up more than 17% since its June lows, I still firmly believe this is a bear market rally for stocks. I guess the question is, if this is a bear market rally, where would I reassess this view and when would I expect the S&P 500 to turn lower. First, my area of interest is around the 200DMA (4327), then the 55WMA (4355) and with the RSI surging to extremely overbought levels, further gains from here could be difficult.
Elsewhere, the key macro catalyst to watch will be the upcoming Jackson Hole symposium, where we may see Chairman Powell provide guidance on balance sheet reductions expected to double from next month, while he also Dealing with the Fed’s so-called pivot problem.
S&P 500 | Where Could the Bear Market Rally Come to a Halt?
Even though the S&P 500 is up more than 17% since its June lows, I still believe this is a bear market rally for stocks. I guess the question is, if this is a bear market rally, where would I reassess this view and when would I expect the S&P 500 to turn lower. First, my area of interest is around the 200DMA (4327), then the 55WMA (4355) and with the RSI surging to extremely overbought levels, further gains from here could be difficult.
Elsewhere, the key macro catalyst to watch will be the upcoming Jackson Hole symposium, where we may see Chairman Powell provide guidance on balance sheet reductions expected to double from next month, while he also Dealing with the Fed’s so-called pivot problem.
S&P 500 Chart: Daily Time Frame
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