S&P 500 (SPY) Report – 11/01/22
Good morning traders!
The S&P 500 ($SPY) is trading above yesterday’s close. Let’s get into it…
A fourth consecutive 0.75 percentage point hike is pretty much baked into the next Fed decision, but investors are hungry for signs that the Fed will slow down the pace of rate hikes in the months ahead. According to CME’s FedWatch tool, a half-point percentage point increase in December is now more probable than a subsequent three-quarter point increase. Additionally, bond rates have decreased, and the Dow Jones Industrial Average just had its best month since 1976.
A long-awaited dovish signal from this point may open the door for stocks to close the year strongly. It is possible that the markets have prepared for yet another letdown. Jerome Powell, the chairman of the Fed, is unlikely to fully rule out another rate increase of this magnitude, especially given the emphasis on the central bank’s focus on managing inflation. 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:
Notable Price Level: $395.00
Potential Intraday Support Levels:
100D SMA (1Y:1D): $388.98
Note: 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
PMI Manufacturing Final 9:45am ET
ISM Manufacturing Index 10:00am ET
Construction Spending 10:00am ET – High Volatility Expected
JOLTS 10:00am ET – High Volatility Expected
API Crude Oil Data 4:30pm ET
Fed Speaker Scheduled:
No Fed Speakers Scheduled
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