Good morning traders!
The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…
The start of the tech earnings season could throw a wrench in the works of the sector’s good start to the year. There is a lot of room for positive surprises this season because fourth-quarter results were generally revised lower. Tech earnings have only recently begun, but Microsoft and Texas Instruments may provide hints as to what to expect when Alphabet, AMD, and Amazon report next week. The industry, and Big Tech in particular, have had a strong start to 2023; the Nasdaq Composite, which is heavily weighted toward technology, is already up more than 8% this year. But it appears that Wednesday’s first round of earnings is undermining stock prices.
If economic data coming out at the end of the week, especially Friday’s PCE inflation report, indicate that the Federal Reserve will stop raising interest rates soon, that pressure might be somewhat reduced.
Potential Intraday Resistance Levels:
9D EMA (4hr): $397.80
Potential Intraday Support Levels:
50D SMA (4hr): $395.80
Note: Moving averages are reported from the previous trading session and will change during the next trading session.
Wednesday Economic Events:
Crude Oil Inventories 10:30am ET – High Volatility Expected
Fed Speaker Scheduled:
No Fed Speakers Scheduled
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