Good morning traders!
The S&P 500 ($SPY) is trading above yesterday’s close. Let’s get into it…
Markets are up modestly this morning as Wall Street tries to bounce back from a gloomy start to the week. Today’s focus will be on the Federal Reserve’s December policy meeting minutes for hints on the central bank’s next rate decision. The central bank is focused on two areas in particular, inflation and the labor market. The Fed must observe easing inflationary pressures and a weakening labor market before making the much anticipated pivot. Of course, it’s always possible for inflation to decline while the labor market remains strong, in which case the Fed would have to consider how that might impact its monetary policy. As of right now, it’s too early to tell.
It’s also a big week for labor market data, which up until now has remained strong. Job openings and the ADP private-sector jobs estimate will be released tomorrow, and December’s nonfarm payrolls will report on Friday. Markets may welcome any indications of weakness as a sign that the Fed’s pivot may occur sooner than expected, whereas persistent strength may have the opposite effect.
Potential Intraday Resistance Levels:
01/03/23 High of Day: $386.43
Potential Intraday Support Levels:
5D EMA (1Y:1D): $381.56
EOD VWAP: $380.88
Note: Moving averages are reported from the previous trading session and will change during the next trading session.
Wednesday Economic Events:
MBA Mortgage Applications 7:00am ET
Redbook Sales 8:55am ET
ISM Mfg PMI 10:00am ET – High Volatility Expected
JOLTS 10:00am ET
FOMC Minutes 2:00pm ET – High Volatility Expected
API Crude Oil Data 4:30pm ET
Fed Speaker Scheduled:
No Fed Speakers Scheduled
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