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January 11, 2025

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S&P 500 Breakdown Alert! Downside Targets Explained

S&P 5850 has been the most important “line in the sand” for stocks since the pullback from the 6000 level in November 2024. With the SPX closing below that 5850 level on Friday, we see further corrective pressures with the 200-day moving average as a reasonable downside target. Today, we’ll break down a series of projection techniques that have helped us hone in on this potential area of support.

The Break of 5850 Completes a Head-and-Shoulders Top

One of the most widely-followed patterns in technical analysis, the fabled head-and-shoulders topping pattern, is formed by a major high surrounded by lower highs on each side. After the S&P 500 established a lower high in December, we immediately started looking for confirmation of this bearish pattern.

To confirm a head-and-shoulders top, and initiate downside targets on a chart, the price needs to break through the “neckline” formed by the swing lows between the head and two shoulders. While price pattern purists may advocate for a downward-sloping trendline to capture the intraday lows of the neckline, I’ve been focused on the price level of SPX 5850. As long as the S&P remained above that level of support, then the market could still be considered in a healthy bullish phase. But a close below the 5850 level on Friday tells me that this corrective move may just be getting started.

Let’s consider some ways to identify a potential downside objective, first using the pattern itself.

Calculating a Minimum Downside Objective

As delineated in Edwards and Magee’s classic book on price patterns, you can use the height of the head-and-shoulders pattern to identify an initial downside objective. Basically, take the distance from the top of the head to the neckline, and then subtract that value from the neckline at the breaking point.

Based on my measurements on the S&P 500 chart, this process yields a downside target of right around 5600. It’s worth noting that Edwards and Magee considered this a “minimum downside objective”, implying that there certainly could be further deterioration after that point has been reached.

Now let’s consider some other technical analysis tools that could help us to validate this potential downside target.

A Confluence of Support Confirms Our Measurement

If we create a Fibonacci framework using the August 2024 low and the December 2024 high, we can see a 38.2% retracement around 5725, which lines up fairly well with the swing low from late October. Perhaps this could serve as a short-term support level during the next downward phase?

As I review the chart, however, I’m struck by the fact that the 50% retracement lines up almost perfectly with our price pattern objective. Many early technical analysts, including the infamous W.D. Gann, favored the 50% retracement level as the most meaningful to watch.

You may also notice that the 200-day moving average is gently sloping higher, rapidly approaching our “confluence of support” around 5600. Given the agreement between multiple technical indicators on this price point, we consider it the most likely downside target given this week’s breakdown.

I would also point that while I feel that identifying price targets can be a helpful exercise, as it gives you a framework with which to evaluate further price action, the most important signals usually come from the price itself. How the S&P 500 would move between current levels and 5600 may tell us a great deal about the likelihood of finding support versus a more bearish scenario in the coming weeks.

RR#6,

Dave

P.S. Ready to upgrade your investment process? Check out my free behavioral investing course!

David Keller, CMT

President and Chief Strategist

Sierra Alpha Research LLC

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.

Stock Market Panic: Why Strong Jobs and Inflation Signal Trouble Ahead

December non-farm payrolls data came in much hotter than expected. More jobs were added, the unemployment rate dipped slightly, and average hourly wages rose. Overall, it was a solid employment report, but the stock market didn’t like the news. Throw in the rise in inflation expectations to 3.3% in January as per the University of Michigan Survey of Consumers, and you get a scenario that points to fewer interest rate cuts from the Federal Reserve in 2025.

Investors don’t want to hear that.

Equity futures fell in pre-market trading, and the broader stock market indexes continued in that direction in the first half hour of regular trading hours. Since then, it has been a choppy day, with the broader indexes closing the day lower.

The Weakness Spreads

Inflation and fewer interest rate cuts sent investors into selloff mode. The S&P 500 ($SPX) closed at 5,827.04, down 1.54%, which brings the index below its November lows (dashed blue line in the chart below). The index closed a tad bit above the support of its 100-day simple moving average (SMA).

FIGURE 1. DAILY CHART OF THE S&P 500 INDEX. The index closed below its November lows and just a hair above its 100-day SMA. Market breadth is also weakening, as seen by the breadth indicators in the lower panels.Chart source: StockCharts.com. For educational purposes.

Market breadth indicators, such as the NYSE Advance-Decline Line, the percentage of S&P 500 stocks trading above their 200-day moving average, and the S&P 500 Bullish Percent Index, are trending lower. Also, notice the series of lower highs and slightly lower lows.

The Nasdaq Composite ($COMPQ) is trading below its 50-day SMA and has a series of lower highs and lower lows (see chart below).

FIGURE 2. DAILY CHART OF THE NASDAQ COMPOSITE. Lower highs and lower lows, a close below the 50-day SMA, and weakening breadth indicators indicate weakness in the tech-heavy index.Chart source: StockCharts.com. For educational purposes.

The Nasdaq Composite Bullish Percent Index ($BPCOMPQ), the percentage of Nasdaq stocks trading above their 200-day moving average, and the Nasdaq Advance-Decline Line are all declining, indicating weakening market breadth.

The S&P 600 Small Cap Index ($SML) was the worst performer, closing lower by over 2%. The chart below shows that the index closed at a key support level, the low of the September to November trading range. This makes it a greater than 10% decline from the November 25 high, which means the small-cap index is in correction territory.

FIGURE 3. DAILY CHART OF THE S&P 600 SMALL CAP INDEX. Small caps have suffered since December and are now at a key support level, which coincides with the low of a previous trading range.Chart source: StockCharts.com. For educational purposes.

Market breadth is weakening in the small-cap index, as indicated by the declining percentage of S&P 600 stocks trading above their 200-day MA and the decline in the Advance-Decline percentages.

Airlines Soar

It wasn’t bad for all industries. The Dow Jones US Airlines Index ($DJUSAR) was the top-performing StockCharts Technical Rank (SCTR) in the US Industries category. You can thank Delta Air Lines, Inc. (DAL) for that. The company reported better-than-expected Q4 earnings and gave a positive 2025 outlook. American Airlines (AAL), United Airlines (UAL), and Alaska Air Group (ALK) rose in sympathy to Delta’s earnings report.

FIGURE 4. AIRLINE INDUSTRY LEADS IN THE TOP 10 US INDUSTRIES SCTR REPORT. Strong earnings from Delta Air Lines helped lift airline stocks. The Dow Jones US Airlines Index was the top performer in the US Industries Top 10 SCTR Report.Image source: StockCharts.com. For educational purposes.

The Pressure of Rising Yields

Treasury yields moved sharply higher on the jobs report news, with the 10-Year Treasury yield reaching a high of 4.79% (see chart below). The last time yields were at this level was in October 2023.

FIGURE 5. DAILY CHART OF THE 10-YEAR US TREASURY YIELD. The 10-year yield rose sharply after the strong jobs data on Friday. Chart source: StockCharts.com. For educational purposes.

According to the CME FedWatch Tool, the probability of the Fed holding rates at the current 2.45%–2.50% in their January 29 meeting is 97.30%.

The US dollar continues to strengthen, an indication the US economy remains strong relative to other countries. Precious metals and bitcoin traded higher, which could be because geopolitical risks could soon be a focal point.

There were many significant moves this week—equities fell, yields rose, and the US dollar continued to strengthen. Volatility is stirring, although, at below 20, it still indicates investors are somewhat complacent. A spike in the Cboe Volatility Index ($VIX) and a breakdown of some of the support levels the broader indexes are hanging on to, could put the US stock market into correction territory. Let’s see if the PPI and CPI move the needle next week.

End-of-Week Wrap-Up

  • S&P 500 down 1.94% for the week, at 5827.04.47, Dow Jones Industrial Average down 1.86% for the week at 41,938.45; Nasdaq Composite down 2.34% for the week at 19,161.63
  • $VIX up 21.14% for the week, closing at 19.54
  • Best performing sector for the week: Energy
  • Worst performing sector for the week: Real Estate
  • Top 5 Large Cap SCTR stocks: Rocket Lab USA, Inc. (RKLB); Applovin Corp. (APP); Amer Sports, Inc. (AS); Credo Technology Group Holding Ltd. (CRDO); Reddit Inc. (RDDT)

On the Radar Next Week

  • December PPI
  • December CPI
  • December Retail Sales
  • December Housing Starts
  • Fed speeches from Barkin, Kashkari, Schmid, Goolsbee

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

Nickel Price Forecast: Top Trends for Nickel in 2025

The nickel market has faced challenges over the past few years due to a supply glut and weak demand.

Even though the price of nickel surged in the first quarter of 2024, the higher prices didn’t last, and by the end of the year, any gains the base metal made were erased.

Nickel traded in the US$15,000 to US$15,200 per metric ton range at the start of 2025, but what is in store for the rest of the year, and what trends should investors be watching?

Nickel market oversupply to continue in 2025

The primary conditions holding nickel prices from breaking out have been an oversupply situation as Indonesia continues to produce concentrates at record levels. Meanwhile, the demand side hasn’t seen the growth needed to maintain market balance.

“We believe nickel’s underperformance is likely to continue — at least in the near term — amid weakening demand and a sustained market surplus. A surge in output in Indonesia has dragged nickel lower over recent years, and demand from the stainless steel and electric vehicle batteries sectors continues to disappoint,” Manthey said.

Her statements come as China recently introduced measures that will take effect in 2025. These measures, which involve injecting US$1.4 trillion over the next five years, are meant to help the country’s ailing economy.

However, past measures introduced in 2024, particularly those in September, have yet to significantly affect the country’s housing and manufacturing sectors, which are net demand drivers for stainless steel.

Jason Sappor, senior analyst, metals and mining research with S&P Global Commodity Insights, echoed similar sentiments for nickel’s performance in 2025.

“We expect the market to remain oversupplied in 2025, as Indonesia and China’s primary nickel output expands further,” he said.

Sappor also added that prices expected to remain subdued could lead to further output curtailments across the industry. This would be in addition to cuts already made at various operations around the world, particularly those in Oceania.

However, with prices threatening to fall below US$15,000 at the start of 2025, they may fall low enough to cause significant cuts in Indonesia. This could, in turn, make predictions for the overall nickel market over the next year more challenging.

“The latest news reports that Indonesia’s government is considering making deep cuts to nickel mining quotas to boost prices also highlight that the implementation of restrictions on the country’s nickel output should not be ignored as a risk to forecasts for the market to stay in surplus in 2025,” Sappor said.

For her part, Manthey suggests that cuts to supply in 2024 did little to upset the market surplus, but may have also solidified Indonesia’s dominance over the industry.

“The recent supply curtailments also limit the supply alternatives to the dominance of Indonesia, where the majority of production is backed by Chinese investment. This comes at a time when the US and the EU are looking to reduce their dependence on third countries to access critical raw materials, including nickel,” Manthey said.

Will Trump change the Inflation Reduction Act?

One of the biggest factors that could come into play in 2025 is Donald Trump’s return to the White House.

During his campaign, he made several promises that could lead to a shift in the US’ environmental and energy transition policies. These are likely to include reversing commitments made to the Paris Climate Accords and ending tax credits for electric vehicles.

A significant unknown, however, is how he will approach the Inflation Reduction Act (IRA). The program, which was established under the outgoing Biden administration, was designed to stimulate a move away from fossil fuels while also supporting the procurement of a friendly supply of low-carbon nickel.

One part of the IRA, in particular, has made it challenging for Indonesia to gain a foothold in the US market for its nickel exports. Up until now, EVs must meet foreign entity of concern (FOEC) rules to qualify for the US$7,500 tax credits outlined under the act.

The US considers nations like China, Russia, Iran, and North Korea to be of concern. Under rule 30D of the act, these nations cannot control more than 25 percent of the board seats, voting rights, or equity interests of a company that supplies critical minerals for EV batteries destined for the US.

This has been a major obstacle for Indonesia as it has worked to build a trade partnership, which is part of the critical minerals requirement under the act.

Manthey outlined how Trump may seek to tighten rules, making a trade pact with Indonesia more difficult.

“Indonesia has been trying to reduce China-based ownership of new nickel projects to help its nickel sector qualify for the IRA tax credits. Tighter FEOC rules would create more issues for nickel supply chains and would be an obstacle to Indonesia’s goal of expanding its export market to the US,” she said.

Manthey also outlined that if the rules were tightened, primary and intermediate production would continue to be sent to China.

Investor takeaway

Barring any major shift in the supply and demand environment, the price of nickel is unlikely to have any significant gains over the next year. In turn this won’t make the industry supportive for investors in the short term.

“The surplus in the class 1 market is reflected in the rising exchange stocks. Further inflows of Chinese and Indonesian metal into the exchange’s sheds could put additional downward pressure on the London Metal Exchange’s nickel prices,” Manthey said.

She added that the potential upside would be stronger stainless steel output or a restricted ore supply from Indonesia. However, the downside risk of slower growth in the EV markets or the cancellation of some incentives in the US could offset this.

Overall, Manthey isn’t expecting large price movements.

“We forecast nickel prices to remain under pressure next year as the surplus in the global market continues. We see prices averaging US$15,700 per ton in 2025,” she said.

Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

Silver Crown Royalties Announces Corporate Update

(TheNewswire)

TORONTO, ON, January 10, 202 5 TheNewswire – Silver Crown Royalties Inc. (‘ Silver Crown ‘, ‘ SCRi ‘, the ‘ Corporation ‘, or the ‘ Company ‘) (CBOE:SCRI; OTCQX:SLCRF; FRA:QS0) wishes to provide an update on its 2024 progress and 2025 expectations. Based on minimum silver payment obligations, we anticipate receipt of cash payments on 15,180 ounces of silver for 2024 and 36,063 ounces of silver in 2025 on our royalty portfolio.

Click Image To View Full Size

Silver Crown Royalties Growth Profile

B acTech Environmental Corp. (‘BacTech’)– Bioleaching Facility in Tanquel, Ecuador

In the fourth quarter of 2024 we closed our first all-equity royalty purchase transaction on BacTech’s future bioleaching facility in Tenguel, Ecuador and issued C$1.0 million of units of the Company (‘ Units ‘) at a deemed price of C$10 per Unit at closing. Each Unit consists of one common share in the capital of the company and one warrant entitling the holder thereof to acquire another common share at a price of C$16.00 for a period of 36 months from closing. BacTech is advancing a bioleaching facility in Ecuador with the expectation of first production within the next two years. Upon full deployment of royalty payments (an additional C$3.0 million in common shares at a deemed price of at C$10.00 per common share) BacTech is to deliver 90% of silver produced or 35,000 ounces per year, for a minimum of ten years, whichever is higher.

BacTech continues to make positive advancements regarding its bioleaching initiatives. Early last year BacTech, in collaboration with MIRARCO Mining Innovation, commissioned a bioleaching pilot plant in Sudbury to test bioleaching processes on pyrrhotite tailings, targeting the recovery of nickel, cobalt, and other valuable by-products. The pilot plant has completed baseline campaigns to ensure operational readiness, with full-scale testing planned to commence shortly. BacTech continues to expand its search for historic mine tailings in northern Peru to potentially supply feed for the Ecuador project or establish a base for a new plant near Trujillo, in northern Peru.

Gold Mountain – Elk Gold Mine, British Columbia, Canada

At the end of the third quarter of 2024 Silver Crown received the C$124,299 minimum royalty payment from Elk Gold Mining Corp. pursuant to the terms of the royalty agreement dated May 11, 2023. Cash payments delivered to Silver Crown pursuant to the terms of the Royalty Agreement now total C$216,296.

Gold Mountain encountered various financial challenges that reflected ongoing operational issues, including commissioning difficulties and delays that impacted production levels at the Elk Mine. These challenges stemmed from grade control and sampling inefficiencies during ramp-up, resulting in lower-than-forecast ore production. To address these challenges, the Company implemented a series of financial restructuring initiatives, that included issuing additional common shares, converting secured debt, raising additional capital by way of a convertible debenture and restructured secured obligations to improve its financial position.

Winter operations commenced in late November of 2024, with a planned return to normal operations by late February. The first phase of infill drilling, focused on the east bench, has been completed, supported by Phase 1 financing for exploration drilling. Currently, mining is focused on the east face of Pit 1, targeting the 1300 series vein system at surface. Construction of a new crushing and ore sorting system is set to begin by the end of the month, with the sorting system expected to significantly improve grades.

Pilar Gold Inc. – PGDM Mine, Goiás, Brazil

The restart of commercial production at the PGDM Complex was delayed from Q3 2024 to Q1 2025. Accordingly, while Pilar de Goiás Desenvolvimento Mineral Ltda. has acknowledged its obligation to make minimum royalty payments during Q3 2024 and Q4 2024, it has defaulted on its obligation to make its minimum royalty payment in the amount of US$81,536.41 for the quarter ending September 30, 2024 in accordance with the terms of the amended and restated royalty agreement dated April 26, 2024 between Silver Crown and Pilar (the ‘ A&R Royalty Agreement ‘). The Company had previously agreed to forbear on enforcement action under the A&R Royalty Agreement pursuant to a letter forbearance agreement whereby Pilar agreed to release the C$100,000 contained in a segregated cash account to the Company and pay the balance of the Royalty Payment for the third quarter of 2024 and replenish the Segregated Cash Account no later than December 31, 2024. However, Pilar failed to pay the balance of the Royalty Payment for the third quarter of 2024 and failed to replenish the Segregated Cash Account on December 31, 2024.

Silver Crown will work in good faith with Pilar to cure the ongoing default and provide a further update to the market as soon as possible.

PPX Mining Corp. – Igor 4 project, Peru

During the fourth quarter in 2024 Silver Crown announced the signing of a definitive royalty agreement for up to 15% of the cash equivalent of silver produced from the Igor 4 project in Peru for an aggregate of US$2.5 million in cash. The first tranche of US$1.0 million is to be paid on closing which is expected to occur in early 2025, with the second tranche of US$1.5 million to be paid within six months of Closing. The Royalty will be payable immediately based on current operations at the Project and, beginning on and from the earlier of October 1, 2025 and the startup of metallurgical operations at the 250 tpd CIL and flotation plant currently under construction, will provide for minimum deliveries of the cash equivalent of 14,062.5 ounces of silver per quarter up to a total of 225,000 ounces. Upon the closing of the second tranche, and upon the delivery of the cash equivalent of an aggregate of 225,000 ounces of silver to Silver Crown, the Royalty will automatically terminate. PPX intends to use the proceeds from the sale of the Royalty together with other sources of financing to complete the construction of the Beneficiation Plan.

Peter Bures, Silver Crown’s Chief Executive Officer commented, ‘We are very pleased to continue our collaboration with PPX and are excited about the opportunities the new year will bring. We have great faith in the company as skilled operators and are happy to support them in achieving their production milestones. We continue to be encouraged with progress at GMTN. Although we are disappointed by the non-payment of the PDGM royalty, we note the minimal impact (~C$14,000) to Silver Crown’s revenues to date as we have set up internal protection against such an eventuality. In the meantime, we have been able to identify numerous opportunities to grow our revenue and will continue to advance such opportunities.’

ABOUT Silver Crown Royalties INC.

Founded by industry veterans, SCRi is a publicly traded, silver royalty company. SCRi currently has four silver royalties of which three are revenue-generating. Its business model presents investors with precious metals exposure allowing for a natural hedge against currency devaluation while minimizing the negative impact of cost inflation associated with production. SCRi endeavors to minimize the economic impact on mining projects while maximizing returns for shareholders.

For further information, please contact:

Silver Crown Royalties Inc.

Peter Bures

Chairman and CEO

Telephone: (416) 481-1744

Email: pbures@silvercrownroyalties.com

FORWARD-LOOKING STATEMENTS

This release contains certain ‘forward looking statements’ and certain ‘forward-looking information’ as defined under applicable Canadian and U.S. securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as ‘may’, ‘will’, ‘should’, ‘expect’, ‘intend’, ‘estimate’, ‘anticipate’, ‘believe’, ‘continue’, ‘plans’ or similar terminology. The forward-looking information contained herein is provided for the purpose of assisting readers in understanding management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Forward-looking statements and information include but are not limited to statements with respect to SCRi’s ability to achieve its strategic objectives in the future and its ability to target additional operational silver-producing projects. Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual actions, events or results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the impact of general business and economic conditions; the absence of control over mining operations from which SCRi will purchase gold and other metals or from which it will receive royalty payments and risks related to those mining operations, including risks related to international operations, government and environmental regulation, delays in mine construction and operations, actual results of mining and current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined; accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties or interruptions in operations; SCRi’s ability to enter into definitive agreements and close proposed royalty transactions; the inherent uncertainties related to the valuations ascribed by SCRi to its royalty interests; problems inherent to the marketability of gold and other metals; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; industry conditions, including fluctuations in the price of the primary commodities mined at such operations, fluctuations in foreign exchange rates and fluctuations in interest rates; government entities interpreting existing tax legislation or enacting new tax legislation in a way which adversely affects SCRi; stock market volatility; regulatory restrictions; liability, competition, the potential impact of epidemics, pandemics or other public health crises on SCRi’s business, operations and financial condition, loss of key employees. SCRi has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. SCRi undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available.

This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities of the Company in Canada, the United States or any other jurisdiction. Any such offer to sell or solicitation of an offer to buy the securities described herein will be made only pursuant to subscription documentation between the Company and prospective purchasers. Any such offering will be made in reliance upon exemptions from the prospectus and registration requirements under applicable securities laws, pursuant to a subscription agreement to be entered into by the Company and prospective investors. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

CBOE CANADA DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.

Copyright (c) 2025 TheNewswire – All rights reserved.

News Provided by TheNewsWire via QuoteMedia

This post appeared first on investingnews.com

Stock Futures Lower after S&P 500 futures ticked down 0.18%

Stock futures are trading slightly lower Monday morning as investors gear up for the final month of 2024. S&P 500 futures slipped 0.18%, alongside declines in Dow Jones Industrial Average futures and Nasdaq 100 futures, which dropped 0.13% and 0.17%, respectively. The market’s focus is shifting to upcoming economic data, particularly reports on manufacturing and construction spending, ahead of this week’s key labor data releases.

November was a standout month for equities, with the S&P 500 futures rallying to reflect the index’s best monthly performance of the year. Both the S&P 500 and Dow Jones Industrial Average achieved all-time highs during Friday’s shortened trading session, with the Dow briefly surpassing 45,000. Small-cap stocks also saw robust gains, with the Russell 2000 index surging over 10% in November, buoyed by optimism around potential tax cuts.

As trading kicks off in December, investors are keeping a close eye on geopolitical developments in Europe, where France’s CAC 40 index dropped 0.77% amid political concerns, while Germany’s DAX and the U.K.’s FTSE 100 showed smaller declines.

S&P 500 futures will likely continue to act as a key barometer for market sentiment, particularly as traders assess the impact of upcoming economic data and global market developments.

S&P 500 Index Chart Analysis

This 15-minute chart of the S&P 500 Index shows a recent trend where the index attempted to break above the resistance level near 6,044.17 but retraced slightly to close at 6,032.39, reflecting a minor decline of 0.03% in the session. The candlestick pattern indicates some indecisiveness after a steady upward momentum seen earlier in the day.

On the RSI (Relative Strength Index) indicator, the value sits at 62.07, having declined from the overbought zone above 70 earlier. This suggests that the bullish momentum might be cooling off, and traders could anticipate a short-term consolidation or slight pullback. However, with RSI above 50, the overall trend remains positive, favoring buyers.

The index’s recent low of 5,944.36 marks a key support level, while the high at 6,044.17 could act as resistance. If the price sustains above the 6,020 level and RSI stabilizes without breaking below 50, the index could attempt another rally. Conversely, a drop below 6,020 could indicate a bearish shift.

In conclusion, the index displays potential for continued gains, but traders should watch RSI levels and price action near the support and resistance zones for confirmation.

The post Stock Futures Lower after S&P 500 futures ticked down 0.18% appeared first on FinanceBrokerage.

S&P 500 climbed 0.3%, and Nasdaq-100 futures jumped 0.7%

Stock futures climbed on Wednesday, driven by strong performances from Salesforce and Marvell Technology, following upbeat quarterly earnings. Futures tied to the Dow Jones Industrial Average rose by 215 points (0.5%), while S&P 500 futures gained 0.3%, and Nasdaq-100 futures advanced by 0.7%.

Salesforce surged 12% after reporting fiscal third-quarter revenue that exceeded expectations, showcasing robust demand in the enterprise software sector. Meanwhile, chipmaker Marvell jumped 14% after surpassing earnings estimates and providing optimistic fourth-quarter guidance, indicating resilience in the semiconductor industry.

This movement follows a mixed session on Wall Street, where the S&P 500 and Nasdaq closed with small gains, while the Dow dipped slightly. The broader market has experienced a modest start to December, contrasting with November’s robust rally, but analysts anticipate a resurgence in momentum. LPL Financial’s George Smith pointed out that December historically sees strong market performance, particularly in the latter half of the month.

However, economic data introduced some caution. ADP’s report revealed that private payrolls grew by just 146,000 in November, missing estimates of 163,000. This signals potential softness in the labor market, with investors now awaiting Friday’s November jobs report for further clarity.

S&P 500 Index Chart Analysis

Based on the provided stock chart, which appears to be a 15-minute candlestick chart for the S&P 500 Index, here’s a brief analysis:

The chart shows a clear upward trend, with higher highs and higher lows indicating bullish momentum over the analyzed period. The index has steadily climbed from a low of approximately 5,855 to a recent high of 6,053.58, suggesting strong buying interest.

Key resistance is observed near 6,050-6,053 levels, as the price has struggled to break above this zone in the most recent sessions. If the index breaches this level with strong volume, it could lead to further upward movement. Conversely, failure to break out may lead to a pullback, with potential support around the 6,000 psychological level and 5,980, where consolidation occurred previously.

The candlestick patterns show relatively small wicks, indicating limited volatility, which could imply steady market confidence. However, the bullish rally could be overextended, warranting caution for traders, especially if any negative catalysts emerge.

In summary, the short-term trend is bullish, but traders should monitor resistance levels and volume for signs of a breakout or reversal. It’s also essential to watch broader market factors, as indices are often influenced by macroeconomic data and sentiment.

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Disney, Fox, Warner Bros. Discovery call off Venu sports streaming service

Disney, Fox and Warner Bros. Discovery have called off plans to launch their sports streaming service, Venu, the companies said in a joint statement Friday.

“After careful consideration, we have collectively agreed to discontinue the Venu Sports joint venture and not launch the streaming service,” they said in the statement. “In an ever-changing marketplace, we determined that it was best to meet the evolving demands of sports fans by focusing on existing products and distribution channels. We are proud of the work that has been done on Venu to date and grateful to the Venu staff, whom we will support through this transition period.”

Venu was first announced in February and intended to combine the live sports assets of Fox, WBD and Disney-owned ESPN. It was initially slated to launch before the start of the NFL season in September, but was delayed in part by a legal challenge from internet TV bundler Fubo, which claimed the platform would be anticompetitive.

Together Disney, Fox and WBD control more than 50% of all U.S. sports media rights, and at least 60% of all nationally broadcast U.S. sports rights, according to the judge on the antitrust case.

The news that it would not launch came as a shock to Venu employees, who found out late Thursday night, according to people familiar with the matter. They believed they had a pathway forward to launch the service after Disney agreed earlier this week to merge its Hulu+ Live TV with Fubo, settling all litigation over Venu.

But the judge’s response in Fubo’s lawsuit questioned the legality of cable bundling in general, prompting Disney to strike the deal with Fubo, through which Disney would take 70% control of the resulting company. And two days ago, satellite providers DirecTV and Dish sent letters to federal court arguing that the legal questions brought up by the judge remained unanswered.

Rather than risk an extended lawsuit that could jeopardize bundling in general — including Disney’s efforts to bundle its own streaming entities (ESPN, Hulu and Disney+) — the three companies decided to pull the plug on Venu, according to people familiar with the company’s decisions.

Warner Bros. Discovery’s business model relies heavily on negotiating bundled carriage agreements for its many cable networks, including CNN, TNT, HGTV and Food Network.

Disney is targeting a debut of ESPN “Flagship,” an all-inclusive ESPN streaming service, for August 2025. The still unnamed ESPN streaming service will including everything that airs on ESPN’s linear network, unlike ESPN+.

Disney’s deal with Fubo, along with the company’s recent carriage renewal with DirecTV, also gives the company new ways to package so-called skinny bundles — narrower selections of channels for less money. This was the idea behind Venu: selling a smaller number of linear channels for less money than traditional cable TV.

Disclosure: Comcast, which owns CNBC parent NBCUniversal, is a co-owner of Hulu.

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Vince McMahon settles with SEC over hush money agreements as civil assault case continues

The Securities and Exchange Commission said Friday that World Wrestling Entertainment co-founder Vince McMahon will pay more than $1.7 million in relation to charges that he failed to disclose payment agreements related to sexual assault charges.

Meanwhile, a woman suing McMahon and the WWE said she was pressing on with her civil case related to the allegations.

The SEC said McMahon circumvented WWE internal accounting controls and caused material misstatements in the company’s 2018 and 2021 financial statements.

The SEC added that McMahon agreed to the settlement without admitting or denying its findings. He will pay a $400,000 civil penalty and reimburse WWE approximately $1,331,000. 

“Company executives cannot enter into material agreements on behalf of the company they serve and withhold that information from the company’s control functions and auditor,” Thomas P. Smith Jr., Associate Regional Director in the New York Regional Office, said in a statement.

McMahon released the following statement Friday:

“The case is closed. Today ends nearly three years of investigation by different governmental agencies. There has been a great deal of speculation about what exactly the government was investigating and what the outcome would be. As today’s resolution shows, much of that speculation was misguided and misleading. In the end, there was never anything more to this than minor accounting errors with regard to some personal payments that I made several years ago while I was CEO of WWE. I’m thrilled that I can now put all this behind me.”

Last month, U.S. prosecutors indicated they would continue a criminal investigation into McMahon while a civil case being brought by a former WWE employee alleging sexual assault and trafficking went forward. 

A DOJ spokesperson did not immediately respond to a request for comment.

An attorney for Janel Grant, a former WWE employee who filed the civil case, said in a statement that Grant intended to press on with her suit against McMahon, WWE and John Laurinaitis, a former company executive.

“During his time leading WWE, Vince McMahon acted as if rules did not apply to him, and now we have confirmation that he repeatedly broke the law to cover up his horrifying behavior, including human trafficking,’ said the attorney, Ann Callis.

‘The SEC’s charges prove that the NDA Vince McMahon coerced Ms. Grant into signing violates the law, and therefore her case must be heard in court. While prosecutors for the Southern District of New York continue their criminal investigation, we look forward to bringing forward new evidence in our civil case about the sexual exploitation Ms. Grant endured at WWE by Vince McMahon and John Laurinaitis.”

The SEC alleges McMahon failed to disclose one $3 million payment paid to a former WWE employee — and another $7.5 million paid to a female independent contractor — in exchange for their not filing claims against him.

As a result, the agency said, the WWE overstated its 2018 net income by approximately 8% and its 2021 net income by approximately 1.7%. 

The SEC did not name either payment recipient. In 2022, the Wall Street Journal reported McMahon had paid $3 million to a former WWE employee to quash sexual assault allegations.

Two years later, that employee, Grant, filed explosive sexual assault and trafficking allegations against McMahon and WWE, prompting McMahon to step down as executive chairman of TKO, the WWE’s parent company, and relinquished all roles with WWE.

The Wall Street Journal has reported that McMahon has paid as much as $12 million over 16 years to suppress various allegations of sexual misconduct and infidelity.

The settlement comes as Linda McMahon, Vince McMahon’s wife and former WWE CEO, prepares for Senate confirmation hearings to become education secretary in President-elect Donald Trump’s second administration.

CORRECTION (Jan. 10, 2025, 12:50 p.m. ET): A previous version of this article misstated the last name of one of the former WWE employees who filed a civil case against Vince McMahon. She is Janel Grant, not Janel Hill.

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