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What to Watch in This V-Shaped Recovery

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Total Wealth

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Monday Takeaways: What to Watch in This V-Shaped Recovery

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Shah Gilani

Shah Gilani
Chief Investment Strategist

The bull market is back on track - but key resistance levels will determine if this recovery has legs...

After erasing all Liberation Day losses, the S&P has finally broken out of its downtrend, pushing above both the 50-day moving average and critical resistance.

Oil prices are collapsing as Saudi Arabia floods the market - a potential inflation killer that could accelerate the Fed's rate cut timeline.

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Meanwhile, corporate America is delivering the goods:

  • 76% of reporting companies beat earnings estimates
  • Revenue beats running at 62% - slightly below historical averages but still positive
  • Earnings coming in 8.6% above estimates - significantly higher than the one-year average of 6.1%

Wednesday's Fed meeting will be the next major catalyst, with markets hoping Powell acknowledges cooling inflation pressures.

Do do we buy this breakout or prepare for the next leg down?

Click here or on the image below to find out what this rally needs to keep going.

Cheers,

Shah

Video - Monday Takeaways
 
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(WITH TRANSCRIPT)

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