S&P 500 (SPY) Report – 02/08/23

Good morning traders!

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

On Tuesday, Federal Reserve Chairman Jerome Powell emphasized the need for ongoing interest rate rises while also stating that a “disinflationary process” has already begun. Powell made it clear that the central bank would continue to concentrate on the monthly data and make decisions one meeting at a time. Markets have been anticipating the central bank may pause or even reduce rate hikes soon after last week’s quarter-point interest rate increase and the January jobs data. Powell, however, told the Economic Club of Washington that the Fed can’t let off just yet because of the robust hiring numbers. To get inflation down to 2%, according to Powell, there is “a significant road ahead,” and getting it to go away fast and painlessly isn’t guaranteed.

Long Trade Ideas:

  • The market closed strong yesterday after Powell’s speech, so we could see this momentum continue on into today. The $SPY is showing signs of support at the 50D SMA on a 30 min chart ~$413.34.  

Short Trade Ideas:

  • Now with yesterday’s rally, some profit taking will probably take place. The $SPY is trading below VWAP and the 200D moving average on a 1 min chart, two areas we might see some selling.

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

Wednesday Economic Events:
MBA Mortgage Applications 7:00am ET
Wholesale Inventories 10:00am ET
EIA Petroleum Report 10:30am ET – High Volatility Expected

Fed Speaker Scheduled:
John Williams 9:20am ET
Lisa Cook 9:30am ET
Michael Barr 10:00am ET
Neel Kashkari 12:30pm ET
Christopher Waller 1:45pm ET


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.

Related Articles

Notify of
Inline Feedbacks
View all comments