Good morning traders!
The S&P 500 ($SPY) is trading above yesterday’s close. Let’s get into it…
Following a day of heavy selling on Wednesday, the stock market is up this morning. The focus is still on economic data. Words from numerous Federal Reserve officials suggesting the Fed could need to undertake more rate hikes than the market presently anticipates, which would drive inflation—and economic demand—downward, helping to drive the downside. This cast some doubt on Fed Chairman Jerome Powell’s assertion that inflation should continue to decline throughout the year, despite the fact that he has repeated it frequently over the past weeks or so. Powell has said that a few more rate hikes might be necessary before the Fed decides to stop.
Long Trade Ideas:
- The $SPY is currently trading above the 200D and 50D Simple Moving Averages on a 4hr,1hr, 30 min, and 15 min chart time frames, so the bullish momentum may continue today. A possible long entry may be the weekly Volume Profile Value Area High for support at ~412.55.
Short Trade Ideas:
- The $SPY is trading near yesterday’s high this morning, an area we have seen heavy selling. We might see the S&P pull back to VWAP and the weekly Value Area high for a potential short trade.
Note: Moving averages are reported from the previous trading session and will change during the next trading session.
Thursday Economic Events:
Initial Jobless Claims 8:30am ET – High Volatility Expected
EIA Natural Gas Report 10:30am ET
Fed Speaker Scheduled:
No Fed Speakers Scheduled
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