Good morning traders!
The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…
The market was choppy yesterday, fluctuating around break-even at the closing while awaiting the release of the CPI data this morning. In the latest September inflation report, consumer prices climbed more than expected. In the year ending in September, the Consumer Price Index increased by 8.2 percent, another stubbornly high figure that startled the markets. This is bad news for the Fed, as it attempts to slow down the fastest price hikes in 40 years.
The S&P 500 ETF is getting close to pre-Covid highs, the next level we believe the market might hold as support. That is roughly a 2.9% drop in the security price to hit the price of $339.08, as of pre-market today. We advise everyone to size down, and trade with caution as the market could go either direction very quickly; especially as political, geo-political, and inflation uncertainty is on the rise.
Potential Intraday Resistance Levels:
10/02/22 Low of Day: $355.08
Potential Intraday Support Levels:
Pre-Covid Highs: $339.08
Note: Moving averages are reported from the previous trading session and will change during the next trading session.
Thursday Economic Events:
CPI Report 8:30am ET – High Volatility Expected
Crude Oil Inventories: 11:00am ET – High Volatility Expected
Fed Speaker Scheduled:
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