The US stock market appeared flat, and Dow Jones Index still maintained its position above its third Support in Moving Average, inspired by Microsoft’s rebound as investors continued to digest a slew of quarterly results ahead of a key economic data release tonight, such as: 4Q22 GDP that projected at 2.6& (vs. 3.2% in 3Q22), Initial Jobless Claims, and New Home Sales (Dec.). Earnings season is taking over the market sentiment at the moment, with 95 companies in the S&P 500 having reported. Of those, 67% have beaten consensus estimates, well below the 76% average beat rate over the past four quarters. Analysts now see aggregate S&P 500 earnings dropping 3% YoY, nearly double the 1.6% drop at the beginning of the year.

JCI pulled back after forming an Evening Star candle (bearish reversal) at the 6900 midterm Resistance area. It continued the consolidation towards MA10 & MA20 Support in the range of 6750-6760, which is considered reasonable. The market participants are also paying attention to the important economic data released from the US market and monitoring the 4Q22 performance reports from several banks that begin to report this week. NHKSI RESEARCH advises traders/investors to Wait & See, in wait for the JCI to gain solid Support and start its up-swing that trying to break through the 6900 Resistance before deciding to Average Up the portfolio.

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