Current trend

The leading US economy index S&P 500 is correcting at around 5819.0.

The corporate reporting season has officially started. Financial results from insurance giant UnitedHealth Group showed record quarterly revenue of 100.82 billion dollars, beating the previous figure of 98.9 billion dollars, while earnings per share rose to 7.15 dollars from 6.80 dollars. Hygiene products maker Johnson & Johnson reported revenue of 22.5 billion dollars, up from 21.4 billion dollars in the same period a year earlier, and earnings per share of 2.42 dollars, down from 2.66 dollars last year. Bank of America Corp., the largest US mortgage lender, reported quarterly revenue of 25.35 billion dollars, down from 25.2 billion dollars in the same period a year earlier, while earnings per share fell to 0.81 dollars from 0.90 dollars a year earlier.

The growth in the bond market continues, but today a local downward correction is observed: the rate on 10-year debt securities fell to 4.035% from 4.087%, on 20-year securities to 4.384% from 4.464%, and on 30-year securities to 4.322%, which is the low since October 7.

Among the growth leaders are Walgreens Boots Alliance Inc. ( 15.78%), Carnival Corp. ( 6.63%), Charles Schwab Corp. ( 6.10%), Norwegian Cruise Line Holdings Ltd. ( 4.07%).

Among the leaders of the decline are KLA Corporation (–14.70%), Lam Research Corp. (–10.90%), Applied Materials Inc. (–10.69%).

Support and resistance

The index quotes continue to adjust, moving upward on the daily chart and remaining in an ascending channel with dynamic boundaries of 5900.0–5300.0.

Technical indicators maintain a buy signal, which is still stable: fast EMAs on the Alligator indicator are moving away from the signal line, and the AO histogram, being in the buy zone, is forming correction bars.

Support levels: 5760.0, 5540.0.

Resistance levels: 5870.0, 6100.0.

Trading tips

If the asset continues to grow, as well as the price consolidates above the resistance level of 5870.0, long positions with a target of 6100.0 will be relevant. Stop-loss — 5800.0. Implementation time: 7 days and more.

If the asset continues declining and the price consolidates below 5760.0, short positions can be opened with the target at 5540.0. Stop-loss — 5860.0.