S&P 500 (SPY) Report – 01/30/23

Good morning traders!

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

Earnings season continues this week with AMD (Advanced Micro Devices) reporting Tuesday, Wednesday with Meta, formerly known as Facebook. On Thursday, earnings reports are due from Apple, Amazon, and Google. Also this week, traders and investors brace for a potential Federal Reserve increase in interest rates. The majority of traders believe that the Federal Reserve will increase its benchmark interest rate by 0.25 percentage points on Wednesday. If it turns out to be accurate, the Fed’s new target range will be 4.50% to 4.75%.

There are several compelling arguments to believe that the majority of the fight against inflation is over. The headline rates of price increases are gradually declining. The Fed’s preferred inflation gauge, the core personal consumption expenditure deflator, decreased from 4.7% to 4.4% last week, according to statistics. On the other hand, the job market continues to appear tight. At 3.5%, the jobless rate presently matches its 50-year low. A rate that low runs the danger of enabling workers to demand higher salaries and for inflation to occur more quickly than anticipated. The DailyBubble team is currently advising everyone to trade cautiously and avoid being the first to decide on the direction of their trade. If you’re a beginner trader, it’s recommended to scale down or avoid trading altogether this week due to the high level of volatility and uncertainty.

Long Trade Ideas:

  • This morning we are seeing buyers step in at the 200D SMA ($401.69) on a 30 min chart. We can expect a gap to fill sometime today from Friday’s lows. 

Short Trade Ideas:

  • The $SPY broke below the 200D SMA on a 15 min chart ($403.83). If the price moves into this level, we might see some selling.  
  • The 50D SMA on a 30 min chart is another area to be watching for resistance.

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

Monday Economic Events:
Dallas Fed Mfg Survey 10:30am 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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