S&P 500 (SPY) Report – 10/25/22
Good morning traders!
The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…
The market is trading lower today, as investors and traders await big tech earnings. All eyes are on Alphabet and Microsoft, who report today. On Wednesday, Meta Platforms will release their earnings, and on Thursday, Amazon and Apple. Any changes are expected to have a significant impact on the market because of their size and market capitalization. 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, President Xi consolidates his power in China and fear has investors running. The country’s rule under Xi Jinping is the issue. Xi secured a rare third term as he packed the party’s top ranks with loyalists, solidifying his position as the leader. Investors are concerned that this indicates that the Zero Covid rules, which have stifled economic growth this year, will continue. Additionally, this could also mean rooting more for state-backed firms, rather than private enterprise. Chinese tech stocks in particular—Alibaba, JD.com, Tencent, Baidu, and Meituan—plunged a good 10%.
Another assumption is that China and the United States are growing apart. President Joe Biden is proposing even-tougher restrictions on the export of chips. Xi frequently discusses promoting China’s self-reliance.
Potential Intraday Resistance Levels:
10/24/22 High of Day:$380.06
50D SMA (1Y:1D): $386.90
Potential Intraday Support Levels:
10/24/22 Low of Day:$373.11
5D EMA (1Y:1D): $372.23Note: Moving averages are reported from the previous trading session and will change during the next trading session.
Tuesday Economic Events:
Redbook Sales 8:55am ET
Case Shiller HPI 9:00am ET
FHFA House Price Index 9:00am ET
Consumer Confidence 10:00am ET – High Volatility Expected
Richmond Fed Mfg Index 10:00am ET
API Crude Oil Supply 4:30pm ET
Fed Speaker Scheduled:
No Fed Speakers Scheduled
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