S&P 500 Market Outlook: Neutral
Bearish Trade: SQ $50.47 – Technology
The bearish DailyPlay for Wednesday, April 8th Square (SQ). As part of the Consumer Discretionary sector (XLK), SQ has rallied off its lows but recently rejected at its $52 resistance with downward pressure from consumer spending slowdowns.
- SQ has provided earnings guidance between -$0.04 and -$0.02
- Larger exposure to small businesses, restaurants and physical retail vs. online
- BofA Credit Card data shows a 20-65% decline in spending in the past month for SQ merchants categories.
- Reports earnings on May 6, 2020 (29 days)
- Rejection at $52 resistance level, suggest further weakness towards $44 gap fill
- SQ has been in a 6M bearish trend for the past month
- Neutral relative strength score (5 out of 10)