DailyPlay Update – Refocus on Earnings – July 6th, 2020
S&P 500 Market Outlook: Neutral
Market Overview: The S&P 500 closed near relative highs on Thursday before the July 4th long weekend as cases of coronavirus continue to stack up in the US. Price action on Thursday was relatively weak as the market closed near session lows and remains below a $315-317 gap resistance zone. Our base case for next week is that markets will remain in this “equilibrium” state between $300 and $315 as cases continue to hoover near highs and we enter earnings season the following week. If markets can break above $317, it will test the final $323 resistance before breaking higher towards $339. Keep an eye out on upcoming earnings by using our Earnings Calendar.
DailyPlay Update: As we return from a long weekend, we maintain holding our short positions in HSY, SBUX, and SPY hedge and AMD, CRWD, IBB, LUV, and WMT long.