S&P 500 (SPY) Report – 02/23/23

Good morning traders!

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

The Federal Reserve released the minutes of its February policy meeting, which revealed that the central bank is prepared to raise interest rates more than initially expected in order to combat rising inflation. However, many officials agreed that slowing the pace of increases could allow for more analysis of the data, while also minimizing the risk of overstepping. The Fed officials acknowledged the risk of not doing enough to combat inflation and agreed that a restrictive policy stance was necessary until inflation was on a sustained downward path towards 2%. Some members even favored a half-point increase, but in the end, the central bank raised rates by a quarter of a percentage point.

According to the minutes, the Fed officials believe that slowing inflation could lead to a peak in the federal-funds rate this year. However, they also see the risk that inflation might not drop as quickly as they had hoped. The Fed staff economists have cut their projection for inflation this year because they anticipate slower growth, but the policymakers are still cautious about the possibility of higher inflation rates.

Since the February 1 decision, the January jobs and retail sales data have both come in stronger than expected, including a 3.4% unemployment rate, the lowest in 53 years. Fed officials noted that the easing financial conditions over the last few months could necessitate tighter monetary policy.

Long Trade Ideas:

• The team at DailyBubble believes the market is going to bounce around today, in anticipation of tomorrow’s Core PCE Price Index data. If the $SPY drops near yesterday’s lows, we are anticipating buyers.

Short Trade Ideas:

• This morning, the $SPY is currently trading around the high of the previous day, which is approximately $401.15. There appears to be some resistance in this area, making it a potential location for taking a short trade.

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

Thursday Economic Events:
GDP 8:30am ET – High Volatility Expected
Initial Jobless Claims 8:30am ET- High Volatility Expected
Chicago Fed Activity Index 8:30am ET
EIA Natural Gas Report 10:30am ET
EIA Petroleum Report 11:00am ET – High Volatility Expected
KC Fed Mfg Index 11:00am ET

Fed Speaker Scheduled:
Raphael Bostic 10:50am ET
Mary Daly 2:00pm 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.