S&P 500 (SPY) Report – 02/03/23

Good morning traders!

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

Stock futures fell this morning after new data showed the economy added around 517,000 jobs in the month of January. Economists surveyed by The Wall Street Journal were expecting around 187,000 new jobs. These days, good jobs data is negative for the market because investors worry it may encourage the Federal Reserve to raise interest rates longer than expected. The unemployment rate also decreased from 3.5% to 3.4%, reaching a low that has not been witnessed since before Neil Armstrong stepped foot on the moon. Additionally today, Big Tech earnings from Apple, Amazon, and Alphabet just released a string of poor financial results. These outcomes are weighing down the Nasdaq, which puts the tech-heavy index on track to give back some of Thursday’s significant gains.

Long Trade Ideas:

• If we see buyers stepping into the market, we will likely see the price fill into yesterday’s low of day at ~$412.88.

Short Trade Ideas:

• Bears showed their presence yesterday and this morning after recent jobs data. The market is trading below VWAP, an area where we might see some intraday resistance. Other levels of resistance to watch could be yesterday’s low of day and this past week’s Volume Area High at ~$412.50.

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

Friday Economic Events:
Employment Report 8:30am ET – High Volatility Expected
PMI Composite Final 9:45am ET
ISM Services Index 10:00am ET – High Volatility Expected
Baker Hughes Rig Count 1:00pm ET

Fed Speaker Scheduled:
No Fed Speakers Scheduled

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