S&P 500 (SPY) Report – 01/23/23

Good morning traders!

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

While layoffs have been increasing in the tech sector for several months, they may be set to affect the broader economy early 2023 according to some economists. In a recent National Association for Business Economics study, more businesses now anticipate that employment will decline over the next three months rather than rise for the first time since 2020. Despite the Federal Reserve’s aggressive rate-hiking stance, the U.S. labor market has remained strong, yet December’s report did show jobs growth slowing for a fifth consecutive month. Businesses cutting staff may appear to be terrible news, but it may indicate that the Fed’s rate hikes may stop sooner than expected, preventing further economic harm.

In the news, the CME Group released figures showing the probability of a 25-basis-point increase, which would bring the interest rate to the desired range of 4.5%–4.75%, has been priced into the markets at 99.7%. Prior to the central bank policy meeting on January 31 and February 1, there are no speeches scheduled by Fed officials. Meanwhile, traders and investors will keep an eye on another set of economic data, which includes the Friday release of the personal consumption expenditure price index, the Fed’s favored inflation gauge.

Potential Intraday Resistance Levels:
Pre-Market High: $397.13

Potential Intraday Support Levels:
200D SMA (1hr): $393.86
1/20/23 Close: $395.88

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

Monday Economic Events:
Leading Indicators 8:30am ET

Fed Speaker Scheduled:
No Fed Speakers Scheduled

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