Here is a quick recap of Markets for the Week of August 2nd, 2024 and what we are watching this week

S&P 500 $SPY -2.1%

Nasdaq Composite $NDX -3.4%

Russell 2000 $IWM -6.7%

Dow Jones Industrial $DJI -2.1%

Growth concerns has the market feeling like the economy is headed for a deeper slowdown while the Fed remains on pause.

Thursday and Fridays' economic data brought fears of stagflation while questioning if the Fed is late in cutting rates just as they were in raising them to combat inflation.

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Key points from last week:

• FOMC Rate Decision- FOMC voted unanimously to leave the target range for the fed funds rate unchanged at 5.25-5.50%,as expected ⚠

• Fed Chair Powell - press conference was largely what the market expected to hear. He didn't pre-commit the FOMC to cutting rates at the September meeting, although he suggested more than once that the discussion of a rate cut would be on the table if the Fed gets the data it hopes it will get 🗣

• July Employment Report- showed softening in the labor market. A labor market that softens more than anticipated could translate into lower spending, which would impact earnings growth🔴

• ISM Manufacturing Index - showed weakening in the manufacturing sector, dropping further into contraction territory to 46.8% in July from 48.5% in June 🔴

• Earnings - from mega cap names were largely overshadowed by the slowdown worries. Meta Platforms (META) +4.8% and Apple (AAPL) +0.9% received positive responses while Microsoft (MSFT) -4% and Amazon (AMZN) -8% sold off.

$SPY: S&P 500 sold off sharply last week tagging our 528 price target on fears the Fed might be moving too slow as the economy is weakening.

SPY is down 5.75% from its highs just 2 week ago. This 528-530 support level is critical for Bulls to hold, under it makes a move to 515 and 505. It now has created plenty of resistance above at 545-555.

🚨Watchlist 👨‍🏫

📀 $SMH: It was a rough July for Tech down 10%; are they due for an oversold bounce? If so we are watching for it to start with the Semiconductors.

Semiconductor ETF is down 23% since its highs just 2 weeks back and testing its previous breakout level from April/May.

Reclaim of 222 has room to 230 and 240 where it’ll run into plenty of sellers. Under 215 and it continues down to 200.

💾 $SMCI: Super Micro Computer will report earnings on Tuesday. After a huge +336% runup to start the year (as a key player in supplying AI hardware) it has pulled back 45% since its highs back in March.

SMCI is expected to post earnings of $8.08 per share for the current quarter, representing a y/y change of +130.2%.

The chart just broke down out of a bear flag and has a lot of work to do;
under $600 has room down to $500-$450. Bulls need to reclaim $730 for a move back to $800-$850.

$PLTR: Palantir Technologies Inc. reports earnings on Monday after the close.

Analysts expect sales to grow 23% y/y to $653 million in the second quarter. The standout should be the software developer's commercial segment, forecasted to have $306 million in quarterly sales.

PLTR has plenty of resistance at $30 with main support coming in at $18-$20.

🚘 $UBER: Uber is reporting earnings on Tuesday. Our swing trade from May of 2023 has been weaker since March down 30% overshadowed by a weakening consumer.

Wall Street expects earnings of $0.31 per share, reflecting an increase of 72.2% compared to the same period last year. Revenues are forecasted to be $10.56 billion, representing a y/y increase of 14.4%.

The chart will need some work if it loses that $60-$65 support level as it has room down to $50 then $40.

If you are interested in seeing how we are looking to trade these names reply back or comment Swing Trades below for more information.

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