S&P 500 (SPY) Report – 02/06/23

Good morning traders!

The S&P 500 ($SPY) is trading below Friday’s close. Let’s get into it…

Stock futures are trading lower this morning with another week of major earnings, such as Pepsi, Uber and Disney. Companies have stated that their forecasts for the upcoming months are modest, and it is doubtful that the 95 companies reporting this week will alter this trend. According to the recent jobs report, anticipating rate cuts before the end of the year is still wishful thinking. This message will likely be reinforced by a number of Fed speakers this week, including a speech by Chairman Jerome Powell on Tuesday. However, stocks have risen. The Nasdaq rose from its December low with a 3.3% weekly gain, while the S&P 500 ended last week up 1.6%.

But we need to face reality. The Fed may raise rates even farther than it previously suggested if the employment report showing a surge of 517,000 nonfarm payrolls is accurate. The report was so overwhelming that many are unsure if it will be toned down later. Official’s have mentioned interest rates going to 5%. Why then, not 6%; or even higher.

Long Trade Ideas:

  • While the current trend looks quite bearish, this does not exclude the idea for a long trade. We did see the $SPY make a pre-market low this morning before bouncing, which could result in a gap fill from Friday’s low of day ~$410.84.

Short Trade Ideas:

  • If bears can continue their strength, some levels of resistance to watch could be the 200D SMA on a 15 min chart, and the 50D SMA on a 30 min chart. As always, wait for confirmation before ever entering a trade.

Note: Moving averages are reported from the previous trading session and will change during the next trading session. 

Monday Economic Events:
Investor Movement Index 12:30pm ET

Fed Speaker Scheduled:
No Fed Speakers Scheduled


DailyBubble’s Disclaimer
This article provided by the DailyBubble team should only be considered as informational and/or entertainment by the reader. DailyBubble makes no representation to buy or sell any security or financial instrument within the article. Readers seeking investment advice should seek independent financial advice from a professional, and independently research and verify. The DailyBubble team wrote this article and may express its own opinions therein.

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