Look for the SP 500 to make new record highs

Article By: ,  Financial Analyst

Look for the S&P 500 to make new record highs

On Wednesday, Lennar (LEN) is awaited to post fourth quarter EPS of $2.37 compared to $2.13 a year ago on revenue of $6.6 billion vs $7.0 billion last year. The Co is the largest homebuilder in the U.S. and on November 20th, the Co revealed that it constructed a new market in the South Carolina's Upstate area named Bird Quarry. Technically speaking, the RSI is below its neutrality area at 50. The MACD is below its signal line and negative. The configuration is negative. Moreover, the share stands below its 20 and 50 day moving average (respectively at $75.05 and $77.07). We are looking at the final target of $61.20 with a stop-loss set at $78.80. 

On Thursday, Accenture (ACN) is likely to unveil first quarter EPS of $2.07 vs $2.09 last year on revenue of $11.4 billion, in line with the year before. Accenture is a leading global professional services company and on December 7th, Accenture Federal Services, a subsidiary of the Co, disclosed that it was awarded a five-year blanket purchase agreement by the Administrative Office of the United States Courts to update the client case-management system of the U.S. Probation and Pretrial Services system. From a chartist's point of view, the RSI is above 50. The MACD is positive and below its signal line. The stock could retrace in the short term. Moreover, the stock is below its 20 day moving average ($247.23) but above its 50 day moving average ($235.42). We are looking at the final target of $260.90 with a stop-loss set at $238.40.    

Also on Thursday, FedEx (FDX) is expected to announce second quarter EPS of $3.81 compared to $2.51 a year ago on revenue of $19.3 billion vs $17.3 billion the year before. The Co operates the largest express package delivery service in the world and on December 8th, United Parcel Service and the Co announced that there shipping capacity reached its limit and millions of packages will be delayed. On a different note, on December 2nd, the Co announced that it entered into an agreement to acquire Shoprunner, an e-commerce platform, to expand its own e-commerce portfolio. The financial details of the deal were not disclosed and it is expected to be completed by the end of the calendar year. From a technical point of view, the RSI is above its neutrality area at 50. The MACD is positive and below its signal line. The stock could retrace in the short term. Moreover, the stock is trading above both its 20 and 50 day moving average (respectively at $287.30 and $277.72). We are looking at the final target of $319.60 with a stop-loss set at $274.20.

On Friday, Nike (NKE) is anticipated to release second quarter EPS of $0.61 vs $0.70 last year on revenue of $10.5 billion compared to $10.3 billion a year ago. The Co designs and manufactures sportswear, and on December 8th, the Co revealed that it signed a six-year agreement with The University of California to provide all 25 of its varsity teams with Nike and Jordan Brand apparel and equipment. The deal is scheduled to begin on July 1st, 2021. In other news, on November 19th, Nike's Board of Director's approved a 12% increase to the quarterly dividend. Looking at a daily chart, the RSI is above 50. The MACD is above its signal line and positive. The configuration is positive. Moreover, the stock is trading above both its 20 and 50 day moving average (respectively at $134.67 and $130.25). We are looking at the final target of $144.80 with a stop-loss set at $133.40.

Looking at the S&P 500 CFD on a 1 hour chart, the index advanced to a new record high of roughly 3,715.00 last week, a bullish signal. The S&P will likely consolidate and retest its new high of 3,715.00. If price can get above the high, then the first Fibonacci target would be 3,794.00. If price falls, traders should look to the 200-period simple moving average (SMA) as possible support. If price cuts through the 200-period SMA, then 3,628.00 would be the next support level. If price gets below 3,628.00 it could drop to 3,594.00 before it finds footing.



Source: GAIN Capital, TradingView

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