GOOGL reports earnings after the close next Thursday

Google parent Alphabet (GOOG, GOOGL) reports earnings after the close next Thursday...

A clear breakout after some consolidation

The market showed a clear breakout after consolidating for a few weeks. It broke above the previous highs of 207 gaping up in the direction of the recent trend. We would need to see a follow through in the next few days to see some new highs. We have to remember that this is the level from were the market tanked in late Dec early Jan. If the market overcomes the next resistance around 209 area this will be very bullish and we could see some new highs with the earning season still in progress I think that is a good possibility.

the market is in consolidation phase

SPY is consolidating the gains from the last month. Its movement is very similar to the area of consolidation around the end of Feb - beginning of March, we saw the market move side-ways for 5 days and then a breakout happened on the 6th day. If we see a move higher tomorrow we could be repeating those higher high's and maybe see all time highs. On the other hand if we see a breakout to the downside we could be in for a revisit of the lows we saw the 2nd week of Feb.

Tomorrow could be a down day?!!

Not that it makes any sense but if we look at what has been happening in the market, an up day followed by a down day almost of the same magnitude.. tomorrow should be a down day??

SPY 50 DMA on the weekly chart

SPY 50 DMA on the weekly chart is worth noticing... where the market stopped today!

Fed leaves rate unchanged

The Fed leave interest rates unchanged and the market likes it and we see a late rally after the minutes came out of the last months meeting.

FOMC stands for The Federal Open Market Committee that organizes 8 meetings in a year and reviews economic and financial conditions, determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. FOMC Minutes are released by the Board of Governors of the Federal Reserve and are a clear guide to the future US interest rate policy.

207 is offering some resistance

207 is also Dec 15 high, form where the market  plunged to the low of 181. It is the price where the market crash started and we saw the low of 181 twice and yet we are back at that level. The SPY did retreat from that level today. If we look closely the market did reach a high of 207.14 and the reversed from that point so it will be giving some hope to traders who are short but we will have to see if there is a follow through for the rest of the week. We are entering into the earnings season next week so it will all depends on the type of earnings announced.