Good morning traders!
The S&P 500 ($SPY) is trading above yesterday’s close. Let’s get into it…
This week, the markets are engaging in a sort of balancing act, weighing the different possible outcomes of the midterm elections on Tuesday and the upcoming release of inflation data later in the week. Stocks have risen even as the elections approach. President Biden’s economic strategy would effectively be put out of commission if the Republicans took control of either chamber. Markets have been excited by this possibility and consider it likely. Gridlock is typically regarded as a positive because it results in fewer policy changes and, thus, less risks.
If it does take place, the market may experience “buying the rumor and selling the news,” at least in the short term. Although a midterm bounce is not guaranteed, history makes for favorable reading. 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:
Pre-Market High: $381.54
11/01/22 Low of Day: $383.29
Potential Intraday Support Levels:
Market Close: $397.95
50D SMA (1hr): $377.53
Note: Moving averages are reported from the previous trading session and will change during the next trading session.
Tuesday Economic Events:
NFIB Small Business Index 6:00am ET
Redbook Sales 8:55am ET
EIA Short-Term Energy Outlook 12;00pm ET – High Volatility Expected
Fed Speaker Scheduled:
No Fed Speakers Scheduled
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