Forget the Q1 S+ P 500 earnings numbers focus on the guidance

Next week US Q1 earnings reports will start to filter across the markets. Those earnings may well be pretty good in many cases and there would be no surprise if we get some decent beats on analyst forecasts. However, that might to count for very much given the immediate backdrop. What surely matters more is what the guidance we see for earnings going forward. That is the key to see how the markets react to positive earnings in Q1. Of course for any companies missing on estimates and then marking down Q2 earnings the reaction may be even harsher. We shall soon see how this all plays out from next week onwards. There is surely a scramble to re-write that guidance going on right now amongst S+P 500 business leaders. The index closed heavily in the red last night, as it crumbled to 5,390.83 and subsequently closed barely above that low, at 5,396.52- a crushing loss of 274.45 points on the session. Naturally, the index was led lower by even more crushing losses seen in the Nasdaq 100. The S+P 500 is currently priced to reopen around 5,365, but that will surely change before live resumes this afternoon