S&P 500 Outlook Ahead of the Key Earnings Reports

Despite the initial shock to stock markets from President Trump’s unexpected move to impose higher-than-anticipated tariffs, the S&P 500 index (traded as US SPX 500 mini on FXOpen) is on track to potentially end April with minimal losses — currently sitting less than 2% below its opening level for the month — or even post a modest gain.

This week marks the peak of earnings season, with around 180 S&P 500 companies scheduled to report their quarterly results, according to media reports. Major names include Apple (AAPL), Amazon (AMZN), Coca-Cola (KO), Eli Lilly (LLY), Meta (META), Microsoft (MSFT), and Chevron (CVX). Given that these companies collectively represent roughly a quarter of the index’s weighting, their performances could significantly sway the S&P 500 (US SPX 500 mini on FXOpen) chart.

Technical Overview of the S&P 500 Chart

Technical analysis reveals that the S&P 500 has been trading within a descending channel since mid-February. However, recent price movements show some encouraging signs:

• The index has climbed into the upper half of this channel, testing its upper boundary.

• It has found support near the median line, as demonstrated by price action on 21st April.

These developments, combined with a sharp rebound from the key psychological level of 5,000 — which acted as major support after the tariff announcement — point to growing bullish momentum. Nonetheless, bears may still view current levels as an opportunity to push prices lower. Whether they succeed will likely depend on the evolving fundamental landscape.

On a more optimistic note, strong corporate earnings and positive global signals — particularly any moves toward easing trade tensions between the US, China, and Europe — could fuel a breakout above the descending channel’s upper boundary, potentially setting the stage for further gains.

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