American Stock Exchange

Corporate reporting data puts pressure on quotes.
S&P 500 is correcting down after the release of the financial results of the leading components and is now trading at 4173.

This week may continue the negative wave of reporting giants of the US corporate sector. The holding company controlled by Warren Buffett, Berkshire Hathaway Inc., reported revenue of 70.81B dollars, beating analysts' forecast of 70.19B dollars, but earnings per share were 4.774K dollars, down from 4.901K dollars a quarter earlier.

Pfizer Inc., Advanced Micro Devices Inc. (AMD) and Starbucks Corp. will present their data today. Market participants expect from pharmaceutical giant Pfizer Inc. a quarterly revenue of 24.1B dollars, which could surpass the previous period's figure of 23.84B dollars. AMD could also improve, posting a profit of 5.01B dollars from 4.83B dollars, while the global coffee market leader, Starbucks Corp., is likely to worsen its numbers (revenue could reach 7.62B dollars, which is below 8.05B dollars a quarter earlier).



The index quotes are trading in a global downtrend, falling towards the support line. Technical indicators maintain the global sell signal: the fast EMAs of the Alligator indicator are below the signal line, and the histogram of the AO oscillator is trading in the sell zone, forming descending bars.

Support levels: 4100, 3800 | Resistance levels: 4280, 4590

The asset is in correction; the probability of fall is maintained.

On the daily chart, the development of the third wave of the higher level 3 was completed and the development of a downward correction as the wave 4 continues. At the moment there is a formation of the wave (A) of 4, which included the third wave of the lower level 3 of (A).

If the assumption is correct, after the wave 4 of (A) is complete, the decline of the price will continue to the levels of 101 - 83.18. The level of 144.05 is critical and stop-loss for this scenario.

On the daily chart, the fifth wave of the higher level (5) is developing, in which wave 3 of (5) appeared and the fourth wave 4 of (5) is developing. At the moment, wave a of 4 has formed, wave b of 4 has completed, and the formation of wave c of 4 has begun, in which the wave of the lower level (iii) of c is being completed.

If the assumption is right, the fall of the pair will continue to the levels of 144.62 - 131.35. The level of 192.89 is critical and stop-loss for this scenario.

The leading index of the London Stock Exchange FTSE 100 demonstrates local corrective dynamics and is now at the level of 7487.0. As expected, after the Bank of England raised the interest rate from 0.75% to 1.00% at yesterday's monetary policy meeting, the stock market of the United Kingdom moved to a decline, since adjusting the value is always a negative aspect for risky assets such as stocks.

As for the corporate segment itself, the presented financial statements turned out to be ambiguous. Thus, Royal Gold Inc., a company engaged in the sale of precious metals and royalties, reported revenue of 162.36M pounds, exceeding analysts' preliminary estimates of 140.45M pounds, while earnings per share amounted to 0.99 pounds against the forecast of 0.86 pounds. Shell Oil and Gas Concern Plc recorded a 26% increase in net profit, despite the loss of 3.9B dollars after leaving the Russian market. Among the negative reports, another oil and gas giant, British Petroleum Plc, should be noted, which reported a drop in quarterly revenue to 49.26B pounds from 52.24B pounds. The final financial result was also affected by estimated losses of 25B dollars due to the loss of the Russian sales market.



The index quotes continue to trade within the framework of the global Broadening Formation pattern and after reaching the resistance line, they show a decline. Technical indicators remain in the state of a sell signal, which is still very weak: the range of EMA fluctuations on the alligator indicator is directed down, and the histogram of the AO oscillator is in the sales zone.

Support levels: 7361, 7020 | Resistance levels: 7670, 7900

The leading index of the US economy, the S&P 500, is correcting downwards, being under pressure from the upward dynamics in the bond market, and is now trading at 4083.5.

The publication period for corporate reports ends, and its results rather disappointed investors. Among the companies that presented their data at the end of last week, the main competitor of Tesla Inc., the American electric car manufacturer Lucid Group Inc. is worth noting. The issuer increased quarterly revenue to 57.68M dollars, which exceeds 26.39M dollars, received in the previous quarter, and 313K dollars in 2021. Earnings per share narrowly missed the positive zone, stopping at –0.05 dollars, which is much better than the loss of –0.64 dollars a quarter earlier. Positive dynamics develop due to the growing demand for the luxury model of the Lucid Air electric car. The company's customers have already reserved more than 30K cars, which will bring the company revenue of about 2.9B dollars.

Serious pressure on risky assets is exerted by the situation in the domestic bond market. For example, the popular 10-year Treasury reached an all-time fall 2018 all-time high of 3.142%, rising from 2.950% in a week, while 20-year bonds are trading at a yield of 3.4606%, which is higher than the 3.2214% shown at the beginning of the month. Only annual bonds did not grow over the past week. Its yield is 2.106%.



The index quotes are traded in a global downward channel, falling towards the support line. Technical indicators hold a global sell signal: fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram is trading in the sell zone, forming down bars.

Resistance levels: 4280, 4590 | Support levels: 4000, 3800

On the daily chart, the third upward wave of the higher level (3) developed, and a downward correction forms as the fourth wave (4). Now, the wave C of (4) is developing, within which the fifth wave of the lower level v of C is developing.

If the assumption is correct, the price will fall to the levels of 2150.5 - 2034.7. In this scenario, critical stop loss level is 2465.74.

The Australian stock market continues to trade in a downtrend after releasing poor financial data on major components and growth in the bond market. At the moment, the ASX 200 index is declining around 7038.0.

Corporate reporting remains ambiguous. Thus, the investment bank Macquarie Group Ltd. reported quarterly revenue of 10.80B AUD, well above the forecast of 7.90B, while advertising giant REA Group Ltd. reported revenue of just 278M AUD, below the forecast of 284.8M AUD, and the indicator of the previous quarter of 326.4M. Thus, given that most market participants have already presented their results, support for the index from this segment is not expected, and the main attention of investors will now be turned to the dynamics of bonds.

The global growth in the securities market, preventing the recovery of ASX 200 quotes, continues. So, during today's trading, the yield of popular 10-year bonds of Australia reaches 3.545%, and the rate of return on conservative 20-year bonds is 3.884%, increasing by 1.24% relative to the beginning of the week. Short-term instruments demonstrate more restrained growth, and annual papers are traded with a yield of 2.071%.



The price of the asset moves within the global side channel, approaching the support line. Technical indicators keep a stable sell signal: fast EMAs of the alligator indicator are below the signal line, and the AO oscillator histogram is deep in the sell zone, continuing to form downward bars.

Support levels: 6900, 6500 | Resistance levels: 7175, 7620

On the daily chart, the third wave of the higher level (3) developed, and a downward correction forms as the fourth wave (4), within which the wave A of (4) develops. Now, the fifth wave of the lower level v of A is forming, within which the wave (iii) of v is developing.

If the assumption is correct, the price will fall to the levels of 178.37 - 135.65. In this scenario, critical stop loss level is 215.3.