S&P 500 Bull Flag Targets 8,050 as Earnings Create Key Trading Setups

Game Plan Revealed | October 27, 2026 | Gareth Soloway

The S&P 500 continues to show technical strength, with a developing bull flag pointing toward a potential move above 8,000. At the same time, earnings reactions are creating opportunities in individual stocks, oil remains sensitive to geopolitical developments, and Bitcoin is struggling to reclaim a critical resistance level. The broader market may be holding firm, but the individual charts are telling different stories.

During Tuesday's My Trading Game Plan, Gareth Soloway, Chief Market Strategist at VerifiedInvesting.com, focused on the technical structures that could define the next moves across stocks, commodities, and cryptocurrencies. His approach remains centered on identifying high-quality setups, understanding where probabilities favor a particular direction, and waiting for price action to confirm the thesis before acting.

S&P 500 Bull Flag Points Toward 8,050 as Markets Await the Fed

The S&P 500 remains one of the stronger charts in the market. Futures moved toward Monday's highs during Tuesday's premarket session, supported in part by a temporary decline in oil prices. More importantly, the daily chart continues to develop a bull flag, a consolidation pattern that often forms after a strong advance and can signal another move higher if resistance breaks.

Gareth identified a potential measured-move target near 8,050 if the pattern confirms an upside breakout. That would put the index above the psychologically important 8,000 level. The bullish structure remains constructive while the consolidation holds its supporting trend lines, although a confirmed breakout is still needed before treating the measured move as an active target. A breakdown through the flag's lower boundary would weaken the bullish interpretation.

The Nasdaq is also showing resilience after bouncing from technical support, with strength in semiconductor and technology-related earnings helping support sentiment. That relative strength matters because continued participation from major technology names could reinforce the broader index setup. However, with several important earnings reports and a Federal Reserve decision approaching, traders still need to account for the possibility of sharp moves in either direction.

Oil Prices React to Iran Deal Headlines as Fed Decision Approaches

Oil provided an early example of how quickly geopolitical developments can influence market sentiment. Reports suggesting the possibility of progress toward an agreement involving Iran pushed crude from just below \$103 per barrel to approximately \$100.50 before prices recovered above \$101. The initial decline reflected the potential for reduced geopolitical risk, although the rebound suggested traders were reluctant to price in a meaningful change without a concrete agreement.

Gareth's interpretation was that repeated suggestions of a possible deal have made the market less responsive to these headlines. A formal agreement could produce a larger reaction, but the absence of confirmed progress leaves uncertainty on both sides. Oil moving back toward \$103 to \$104 could renew concerns about inflation and consumer spending, while sustained weakness in crude could provide some relief to equities.

Tuesday's durable goods report added another piece to the macro picture. Headline orders increased 1.8% month over month, below the 2% expectation cited during the show, while the core reading of 0.5% also missed the anticipated 0.6%. Both figures remained positive, suggesting continued activity but slightly softer momentum than expected.

Attention now turns to Wednesday's Federal Reserve decision and Thursday's PCE inflation report. Markets entered the session expecting the Fed to leave rates unchanged, making the accompanying guidance particularly important. Any shift in the outlook for inflation or future policy could affect Treasury yields, equities, and other risk assets, especially with the S&P 500 approaching a potential technical breakout.

Coca-Cola Earnings Show the Risk of Elevated Stock Expectations

Coca-Cola offered a useful example of how a stock can decline even after reporting solid results. Shares came under pressure following earnings despite a generally positive report, highlighting the importance of expectations and prior price performance.

Defensive, dividend-paying companies have attracted interest as investors have periodically rotated away from higher-growth technology names. That demand helped push Coca-Cola toward its 52-week highs heading into the report, leaving less room for disappointment. When a stock has already experienced a substantial advance, even respectable earnings may struggle to generate additional buying interest if investors were anticipating stronger results or guidance.

For traders, the lesson is to evaluate where a stock is trading relative to its recent range and technical resistance before interpreting an earnings reaction. Strong financial results can coexist with a bearish short-term chart, particularly when the market has already priced in much of the good news.

Whirlpool Stock Tests \$24.50 Support Near Its 2009 Financial Crisis Low

Whirlpool presented a different earnings setup, with shares already under pressure before the company reported results. Following a decline of approximately 6% to 7% during Monday's session, the stock fell further in after-hours trading and approached \$24.50 in Tuesday's premarket session.

That price carries significant historical importance. Gareth identified the \$24.50 area as a major low dating back to the 2009 financial crisis, creating the possibility of a multi-decade double-bottom formation. A test of such a long-term level can attract attention from swing traders, particularly when a stock has experienced substantial selling ahead of earnings.

Gareth compared the situation with Nike, which previously experienced a sharp earnings-related decline before recovering over the following sessions. The comparison illustrates how heavily sold stocks can rebound once selling pressure begins to exhaust itself. However, Whirlpool still needs to demonstrate that buyers can defend the historical support area. A sustained break below \$24.50 would weaken the double-bottom thesis, while a successful hold followed by improving price action could establish the foundation for a potential recovery.

SoFi Earnings Rally Puts \$16.50 to \$16.60 Technical Confluence in Focus

SoFi delivered one of the more substantial earnings reactions of the morning, rising approximately 10% in premarket trading. The move brought attention to a technical setup involving two separate resistance factors that could become important if the stock approaches the area.

Gareth identified a gap-fill level near \$16.50 and a descending trend line connecting three prior pivot points around \$16.60. Together, these factors create a narrow zone of technical confluence. When separate chart structures align within a small price range, the area can carry greater significance because traders using different methods may be watching similar levels.

The \$16.50 to \$16.60 region is therefore an important area to assess if price moves into it. A bearish reaction there could support a resistance-based setup, while a sustained break above the trend line would weaken that interpretation. Gareth also highlighted a secondary pivot near \$17.90 as another potential resistance area. The important consideration is how price behaves at each level, rather than assuming the presence of multiple technical factors guarantees a reversal.

UPS, Corning and HSBC: Why Waiting for Better Price Levels Matters

Not every earnings report creates an attractive trading setup. UPS and Corning demonstrated the importance of waiting for sufficient price movement before committing to a trade. UPS was trading around \$99 after closing near \$100, while Corning showed little change following its report. Neither reaction created the type of meaningful displacement Gareth generally looks for when evaluating earnings-related opportunities.

For UPS, Gareth identified a lower gap-fill area around \$95.60 to \$95.70 as a potential technical level worth assessing if shares decline. Corning had a separate swing-trade support area near \$96. Both levels remain conditional watchpoints, with price needing to reach the relevant zone and show a constructive reaction before a setup can be evaluated.

HSBC also came under pressure following disappointing earnings, bringing the stock closer to a potentially important technical area near \$81.60. Although the decline was significant, Gareth's focus remained on waiting for price to approach established pivot support. A stock becoming oversold can signal that selling has become extended, but it does not independently confirm that a reversal is underway.

These examples reinforce a consistent part of Gareth's trading framework. Earnings can create volatility, but the quality of the opportunity depends on where that volatility takes price relative to support, resistance, and other technical factors.

Gold and Silver Technical Analysis: Support Holds as Silver Weakens

Gold showed signs of stabilization after testing an important support level, although the broader chart had yet to establish a clear directional pattern. Gareth outlined two potential formations: a V-shaped recovery if buyers continue pushing price higher, or a bearish consolidation if the bounce stalls and selling resumes. The next sequence of daily candles should help clarify whether the recent support test develops into a more durable reversal.

Silver displayed a weaker structure, recording lower lows across three consecutive sessions and trading near \$53.70. The presence of long lower candle shadows suggested that buyers were responding to intraday weakness, but those reactions had not yet interrupted the sequence of declining lows.

For silver to improve its technical outlook, buyers would need to establish a stronger recovery and begin reversing the recent pattern of lower prices. Until that occurs, the short-term chart remains vulnerable to additional selling, even if intermittent bounces develop from oversold conditions.

Natural Gas Outlook: AI Data Center Demand Adds a Potential Catalyst

Natural gas is pulling back following a recent reversal, but Gareth highlighted a longer-term fundamental theme that could become increasingly relevant to the commodity. The expansion of artificial intelligence infrastructure is creating substantial demand for electricity, with data center operators seeking reliable sources of power as capacity requirements grow.

Natural gas could benefit from additional demand if more data centers turn to gas-fired generation to support their operations. That potential source of demand would add to the commodity's existing seasonal influences, particularly as winter approaches and heating consumption becomes more important.

The investment thesis remains dependent on how quickly new power generation capacity develops and whether the additional demand becomes meaningful relative to natural gas supply. For traders, the chart still needs to support the fundamental outlook. A promising longer-term narrative does not eliminate the possibility of further short-term weakness during the current pullback.

Bitcoin Below \$81,000: Bear Flag Raises Downside Risk

Bitcoin continues to show relative weakness compared with the major equity indices. While S&P 500 futures were pushing toward recent highs, Bitcoin remained under pressure and had not reclaimed the important \$81,000 area identified by Gareth.

The chart shows Bitcoin consolidating beneath a previously broken support level, creating a potential bear flag. This structure develops when price pauses following a decline but remains unable to recover the technical area it lost. Former support can then act as resistance, making the next attempt to reclaim that level particularly important.

For now, the technical bias remains bearish while Bitcoin trades beneath the broken trend line and the \$81,000 region. A confirmed recovery above that resistance would challenge the negative setup, while a breakdown from the current consolidation could open the door to additional downside. The relative weakness against equities adds another reason to monitor Bitcoin's ability to recover lost support before assuming a broader risk-on move will carry the cryptocurrency higher.

Gareth Soloway's Trading Game Plan: Key Levels and Confirmation

The central message from Tuesday's session was the importance of matching technical setups with confirmation. The S&P 500 bull flag presents a potential upside continuation toward 8,050, but the index still needs to break out. Whirlpool is approaching a historically significant support area near \$24.50, although the double-bottom thesis depends on buyers defending that level. SoFi has a defined confluence zone between \$16.50 and \$16.60, while Bitcoin remains technically vulnerable beneath \$81,000.

Each chart offers a different set of probabilities, and those probabilities can change as new price information develops. A support level that holds strengthens a potential reversal thesis. A resistance zone that breaks can invalidate a bearish setup. The purpose of identifying these areas in advance is to establish a framework for evaluating price action as it unfolds.

Gareth also emphasized the value of waiting when a stock has not reached an attractive technical area. UPS, Corning, and HSBC illustrate that discipline, particularly during earnings season when the temptation to react to every headline can be strong.

Bottom Line: S&P 500 Strength Meets Earnings Volatility and Bitcoin Weakness

The S&P 500 remains technically constructive, with its bull flag keeping a potential move toward 8,050 in focus. Earnings season is creating sharp differences between individual stocks, while oil, Federal Reserve policy, and inflation data could influence the broader market's next move. Bitcoin's continued weakness beneath \$81,000 is a reminder that strength across risk assets remains uneven.

For traders following Gareth's framework, the next step is to watch how price responds at the levels already identified. The strongest setups combine a clear technical structure, multiple supporting factors where available, and price action that confirms the expected reaction. As earnings reports and macroeconomic catalysts continue to arrive, those conditions provide a more disciplined basis for evaluating opportunities than reacting to each new headline.

This article summarizes technical market analysis discussed on My Trading Game Plan on October 27, 2026. All market commentary is provided for educational and informational purposes only and does not constitute financial advice. Technical patterns, price targets, and historical comparisons do not guarantee future performance. Trading and investing involve risk, including the potential loss of principal.