S&P 500 (SPY) Report – 02/01/23

Good morning traders!

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

Corporate earnings season continues and the Fed will announce how much they plan on raising interest rates today at 2:00pm. Traders are anticipating an increase of 25 basis points from the central bank. Following the Fed’s announcement, Jerome Powell, the chairman, will make some remarks after. Investors are looking for a more dovish tone from the Fed as a result of several indicators that inflation is easing in the larger economy. The employment cost index, which measures salary growth, revealed on Tuesday that compensation increased by 1% in the fourth quarter, which was less than the 1.1% Dow Jones prediction. However, traders can be looking for signals that a pivot or even a stop in rises is imminent when they are actually getting ahead of themselves. Expect a lot of volatility and uncertainty this week, and recommend that new traders scale back their positions or stay out of the market altogether.

Long Trade Ideas:

  • We might see buyers stepping in around $404-405, with a 50D SMA currently sitting at $404.79 and the prior day’s point of control at $404.13. 

Short Trade Ideas:

  • Shorts are still present and might see some resistance at yesterday’s close at $406.48.

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

Tuesday Economic Events:
ADP Nonfarm Employment Change 8:15am – High Volatility Expected
Manufacturing PMI 9:45am
ISM Manufacturing PMI 10:00am – High Volatility Expected
Jolts Job Openings 10:00am- High Volatility Expected
Crude Oil Inventories 10:30am – High Volatility Expected

Fed Speaker Scheduled:
FOMC Rate Decision  2:00pm – High Volatility Expected
FOMC Press Conference 2:30pm – 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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