Big Earnings This Week and the Market Outlook

Can the S&P hold up?
On Tuesday, IHS Markit (INFO) is awaited to post 2Q EPS of $0.66 vs. $0.71 the prior year on revenue of $1.1B, in line with last year. The Co provides global data and analytics, and on June 11th, Altium, a provider of PC-based design software for engineers, announced a partnership with the Co so as to offer its users actionable lifecycle status updates during the planning process to end delays thanks to components becoming obsolete. Technically speaking, the RSI is above its neutrality area at 50. The MACD is positive and below its signal line. The stock could retrace within the short term. Moreover, the stock is trading above both its 20 and 50 day MA (respectively at $70.97 and $68.04). We are watching the ultimate target of $80.30 with a stop-loss set at $69.40. 

On Thursday, Nike (NKE) is anticipated to release 4Q EPS of $0.12 vs. $0.62 the prior year on revenue of $7.6B compared to $10.2B last year. The Co designs and manufactures sportswear, and on June 11th, Chief military officer John Donahoe stated that the Co will take steps to raised support racial equality, including but not limited to adding the June 19 commemoration of the top of slavery to the company's list of paid holidays, consistent with Bloomberg. From a chartist's point of view, the RSI is above its neutrality area at 50. The MACD is positive and below its signal line. The stock could retrace within the short term. Moreover, the stock is below its 20 day MA ($97.93) but above its 50 day MA ($91.22). We are watching the ultimate target of $110.90 with a stop-loss set at $92.20. 

Additionally on Thursday, Accenture (ACN) is predicted to announce 3Q EPS of $1.85 vs. $1.93 the prior year on revenue of $10.9B compared to $11.1B within the year before. The Co may be a leading global information technology services provider and on June 15th, Accenture Federal Services, a subsidiary of the Co was awarded a 341 million dollar contract to help the U.S. Department of Commerce in updating its business systems and data platforms. From a technical point of view, the RSI is above 50. The MACD is positive and below its signal line. The stock could retrace within the short term. Moreover, the stock is trading under its 20 day MA ($203.11) but above its 50 day MA ($189.61). We are watching the ultimate target of $228.70 with a stop-loss set at $193.40. 

Finally on Thursday, Darden Restaurants (DRI) is probably going to unveil 4Q LPS of $1.64 vs. an EPS of $1.76 the prior year on revenue of $1.2B compared to $2.2B last year. The Co owns and operates a spread of branded restaurants, and its current analyst consensus rating is 20 buys, 10 holds and 0 sells, consistent with Bloomberg. watching a daily chart, the RSI is below 50. The MACD is positive and below its signal line. The MACD must penetrate its zero line to expect further downside. Moreover, the share stands below its 20 and 50 day MA (respectively at $78.59 and $72.86). We are watching the ultimate target of $58.40 with a stop-loss set at $81.90. 

Looking at the S&P 500 CFD, the index appears to be during a consolidation range after breaking out of a short-term down trend on Monday, last week. The index is currently finding rough support on its 20-period moving average, which is below its 200-period moving average, a bearish signal. However price is advancing and therefore the bias remains bullish as long because the S&P can stay above its low of the week at 3038. Price is predicted to cut around before retesting 3116 and making its way back to 3156. If price cannot hold above 3038 support, we could see the index fall back to 2998. 

 EUR/USD To Test Yearly Low?

EUR/USD has dropped through $1.1 its lowest level since late February amid a rush for the shelter dollar. 

German ZEW sentiment data caused an already panicked market to worry some more. The ZEW index, which gauged financial analyst’s sentiment and consider on an economic situation dived in March, recording the steepest drop on record.

The ZEW index fell to -49.5 in March from +8.7 in February and is now at its lowest level since December 2011. 

German recession
Germany is heading for a recession. things is fast paced . However yesterday Chancellor Angela Merkel announced a general lock down of Europe’s largest economy. All shops are to be closed, no touristic travel domestically or abroad, restaurants open until 6pm and no sports or cultural events allowed. So, consumption will drop dramatically. Large car manufacturers have also announced a short lived halt to production. the availability shock demand shock are going to be crippling and therefore the economic impact are going to be staggering. 
And the problem isn't just Germany, Italy, Spain and France, the most important economies within the eurozone all face severe pressure from the coronavirus outbreak, as governments lock down countries with already very fragile economies.

US retail sales miss
Meanwhile US data is additionally disappointing. Retail sales declined a -0.5% in February, missing expectations of 0.2% increase. These figures show that consumption, the most driver of the US economy had began to slow even before coronavirus social distancing measures were enforced, raising fears that the info out of the approaching months are going to be hideous.

Offshore Dollar Market Stress 
Despite the Fed’s best efforts to ease pressures within the money markets recent signals suggest that the moves haven’t worked. this is often presumably a results of lenders hoarding the dollar in expectation of increased liquidity needs from companies and growing concerns over bad loans. The pressure was most explicit within the euro/dollar 3-month FX spread which widened to 124 bps at one point, its widest level since the ecu debt crisis and up from just 20 bps earlier this month. this suggests that market player are willing to pay higher premiums for dollars, an amber alarm flashing.

EUR/USD hit a 14 month high on 9th March. Since then a correction has been is play which could see the pair retest the year low. Global turbulence within the financial markets and fears of a recession are seeing traders hunt down safe havens like the dollar and therefore the yen. 
Levels to observe 
EUR/USD is down over 1.5% at $1.10, it's picked up off session lows of US$1.0974. It trades below its 50, 100 and 200 sma and comfortably below the descending trendline.
Immediate support are often seen at $1.0974 (today’s low) before $1.0953 (low 28th Feb) and $1.0880 (low 26th Feb).
Resistance are often seen at $1.1026 (200 sma), $1.1118 (today’s high) and $1.1130 (100 sma). we might be trying to find a move above $1.1170 to negate on the present bearish trend on 4 hour chart.