S&P 500 (SPY) Report – 10/19/22

Good morning traders! 

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

Yesterday’s market volatility had traders wondering if the bull market is about to lose steam for a climb higher. Numerous Wall Street analysts have underlined that values still do not adequately reflect the reduced earnings that are commensurate with the current slowdown in economic development and have cited future earnings predictions are still too high as evidence. Of course the market will bottom out someday, but we don’t believe that moment has come yet until the Fed changes direction or profits are appropriately valued. 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.

In the news, the release of an extra 10–15 million barrels of oil from the Strategic Petroleum Reserve will be announced by President Joe Biden. The decision to extend the present SPR distribution program will assist cover costs when the European Union oil embargo is due to take effect on December 5.

Potential Intraday Resistance Levels:
10/18/22 High of Day: $375.45
200D SMA (4hr): $377.25

Potential Intraday Support Levels:
10/17/22 High of Day: $367.98
10/18/22 Low of Day: $367.52

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
Housing Starts and Permits 8:30am ET – High Volatility Expected
EIA Petroleum Report 10:30am ET – High Volatility Expected
Beige Book 2:00pm ET

Fed Speaker Scheduled:
Neel Kashkari 1:00pm ET
Charles Evans 6:30pm ET
James Bullard 6:30pm ET

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