S&P 500 Market Outlook: Mildly Bullish

Bullish Trade: HD $221.84

The bullish DailyPlay for Tuesday, May 5th is Home Depot (HD). HD has rallied during COVID-19 lockdowns as home improvement projects and stimulus checks have increased spending. 

Fundamental View

• Home improvement spending has accelerated 10-15% since April
• HD benefits from extended lockdown periods as people stay at home
• Earnings on May 19th (in 15 days)

Technical View

• HD’s 1M and 6M trend has remained bullish on April 27th
• HD broke out above $215 resistance and retesting as support
• Strong relative strength score (10 out of 10)