S&P 500 (SPY) Report – 05/05/23
Good morning traders!
The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…
US stock futures traded higher Friday morning following the Labor Department’s April jobs report, which showed that the US labor market remains strong with over 250,000 jobs added last month. This capped off a busy week for investors, with the Federal Reserve raising interest rates and key earnings from companies such as Apple and Starbucks coming in positively for the quarter.
The previous day, regional bank stocks, including PacWest Bancorp, Western Alliance Bancorporation, and Zions, saw double-digit declines, and gold prices were flat. However, these stock movements were reversed during Friday’s early morning trading session, with PacWest, Western Alliance, and Zions seeing premarket gains of around 18%, 12%, and 8%, respectively. Gold prices remained near record highs at $2,046.00 an ounce, and crude oil prices gained to trade around $70.38 and $74.29 a barrel, respectively.
Trade Ideas:
Traders are advised to exercise caution this week as the FOMC meeting and recent rate decision could lead to significant market volatility. It’s crucial to wait for confirmation and avoid making impulsive trades. Regarding today’s trading, the $SPY seems to be finding support at the 50-day Simple Moving Average (SMA) on the daily chart, and the 200-day SMA on the 4-hour chart. With the recent decline in the S&P 500, we predict a bullish day if the support levels hold.
Friday Economic Events:
Employment Report 8:30am ET – High Volatility Expected
Baker Hughes Rig Count 1:00pm ET
Consumer Credit 3:00pm ET
Fed Speaker Scheduled:
Lisa Cook 1:00pm ET
James Bullard 1:00pm ET
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