Salesforce, Dell and the S&P 500 Post-Fed
Let's look at the post-Fed action and some individual setups.
We’ve had a pretty tough stretch in the S&P 500 futures lately (the ES), which had fallen in 10 of the 12 session before Wednesday. We had some nice gains on Wednesday’s Fed day, but the ES is not out of the woods.
As usual, the post-Fed action ran the stops in both directions. The ES ultimately settled higher by almost 41 points on the day, but let’s look at the key levels now.
Last week, the ES was holding the 50-day moving average and 4435 area as support, while the 10-day and 21-day moving averages were acting as resistance.
Ultimately, it resolved lower, with a flush down toward 4300. On the ensuing rebound though, the ES is rallying to the 50-day and 10-day moving averages, as well as prior support near 4435 and last week’s low at 4406.50. The 10-week moving average is also in play, around 4418.
That’s a lot of levels. Bulls need to see the ES eventually reclaim these measures if they want to see the index make a push toward new all-time highs. Just keep an eye on this area — 4406 to 4435 — that’s all.
On the downside, the post-Fed low is 4371.25.
Salesforce
Salesforce gave us some nice guidance figures this morning, giving it a nice pre-market pop. The move gives us a push over the $262.50 area, but right into the $266 to $270 area resistance.
Above $262.50 is a good start. So is the weekly-up rotation. But we need to see this move stick to give CRM a chance to push through resistance. Ultimately, a move above the August high at $275.22 opens the door to the all-time highs near $285.
Dell
Dell also gave investors some good news this morning and shares are up 2% to $101.25 in pre-market trading.
This one is attractive if it can make a slightly larger push. Specifically, I’m watching the $102.14 level. A close above this mark (even on a 4H or 1H chart, potentially) gives us a weekly-up rotation and a push above downtrend resistance.
Below these measures and it may be a false start.
Cheers!
Disclaimer: Charts and analysis are for discussion and education purposes only. I am not a financial advisor, do not give financial advice and am not recommending the buying or selling of any security.