Stock Futures Steady as November Trading Winds Down

Zscaler’s Premarket Performance

In the technology sector, Zscaler’s shares have experienced a 7% decline in premarket trading. Despite posting fiscal first-quarter earnings and revenue surpassing expectations, the cloud security company’s maintained forecast for fiscal 2024 billings, ranging between $2.52 billion and $2.56 billion, has prompted investor caution.

This decline contrasts sharply with the company’s overall annual performance, where its shares have surged 71.5%, significantly outpacing the First Trust NASDAQ Cybersecurity ETF (CIBR), which gained 26.2%.

Equities Outlook and Analyst Perspectives

The broader equities market appears to be in a holding pattern, balancing between bullish and bearish sentiments following strong returns in November and ahead of upcoming holiday spending data.

Equity strategist Scott Chronert from Citi predicts a market rally expanding in 2024, driven by diverse sector earnings. He anticipates the S&P 500 hitting 5,000 points by mid-2024.

Similarly, Renaissance Macro’s Jeff deGraaf forecasts the S&P 500 reaching 4,800 in the coming year, factoring in the impact of the 2024 election on the macroeconomic environment.

Anticipated Economic Data and Federal Reserve Speeches

As traders and investors look ahead, attention turns to upcoming economic data releases on housing prices and consumer confidence, along with earnings reports from companies like CrowdStrike.

Additionally, remarks from several Federal Reserve officials, including Chicago Fed President Austan Goolsbee and Governors Christopher Waller and Michelle Bowman, are eagerly awaited to gauge the central bank’s perspective on the economic outlook.

Technical Analysis

In analyzing the S&P 500 Index futures, the current daily price of 4558.25 lies above both the 200-day and 50-day moving averages, positioned at 4302.77 and 4373.85 respectively. This placement indicates a bullish trend in the medium to long-term perspective.

The price is hovering just below the minor resistance level of 4562.50, suggesting that this could be a key threshold for potential upward movement. It also comfortably exceeds the main support level at 4424.50 and minor support at 4494.40, reinforcing the current bullish sentiment.

The market’s positioning above significant moving averages and key support levels, combined with its proximity to minor resistance, points towards a bullish outlook in the short to medium term for the S&P 500 Index futures.