S&P 500 (SPY) Report – 01/31/23

Good morning traders!

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

Markets are trading above yesterday’s close as traders and investors gear up for a busy day of corporate earnings, as well as the beginning of the Federal Reserve’s two-day policy meeting in Washington. Over the next few days, more than one hundred S&P 500 companies will report their December quarterly earnings, and the Federal Reserve will announce its highly anticipated interest rate decision. Due to the high level of volatility and uncertainty this week, it is advised that beginner traders size down or refrain from trading entirely.

In the news, China’s economy exhibited a strong rebound in January, the first full month after reopening, with the National Bureau of Statistics reporting that its primary PMI index increased to 50.1 from 47.0 in December. The widespread consensus is that growth is indicated by any reading above 50. On Thursday, the Bank of England and the European Central Bank will each announce significant rate decisions for their respective economies.

Long Trade Ideas:

  • This morning we are seeing buyers step in near last week’s volume profile (value area low) ~$398. If strength continues. Some points of entry could be VWAP, the 50D SMA on a 15 min chart ~$400, and yesterday’s market close at $400.50 .

Short Trade Ideas:

  • Yesterday, the bears showed their presence, leaving us with clues for potential short trades.Today we are watching the 200D SMA on a 15 min chart for signs of resistance around ~$403. This also correlates with this week’s volume profile (value area high) as another indicator to look for resistance, near ~$403.

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

Tuesday Economic Events:
Employment Data 8:30am ET
CB Consumer Confidence 10:00am ET – High Volatility Expected

Fed Speaker Scheduled:
FOMC Policy Meeting – High Volatility Expected


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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