S&P 500 (SPY) Report – 01/24/23

Good morning traders!

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

The earnings season continues today with Microsoft reporting, tomorrow Tesla and Boeing, and Thursday with Intel. Tech stocks are off to a strong start in 2023, but there are some associated risks that could arise. The tech-heavy Nasdaq Composite recorded its second straight rise of 2% or more on Monday and is now about 9% up for the year. The rally has been significantly fueled by the market’s expectation that the Federal Reserve would stop raising rates soon, and investors have also welcomed the widespread layoffs that have occurred in the industry. While investors have praised such cost-cutting tactics as a way to increase profitability in the here and now, they do slightly restrain growth when economic conditions improve.

Not just earnings pose a threat to the rally’s continuation. The idea that a Fed pivot is near is gaining ground, but it is weak. In the coming weeks, news on the labor market or higher-than-expected inflation may quickly change that, beginning with Friday’s PCE report.

Potential Intraday Resistance Levels:
1/23/23 High of Day: $402.65
EOD VWAP: $400.03

Potential Intraday Support Levels:
50D SMA (1hr): $397.44

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

Tuesday Economic Events:
Redbook Sales 8:55am ET
PMI Composite Flash 9:45am ET
Richmond Fed Mfg Index 10:00am ET
API Crude Oil Data 4:30pm ET

Fed Speaker Scheduled:
No Fed Speakers Scheduled

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