S&P 500 (SPY) Report – 11/21/22

Good morning traders!

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

The markets are trading slightly lower this morning as several economic updates from the Federal Reserve are expected during this shortened week of trading. This week, investors and traders will be looking at the durable goods sales report, new home sales data, weekly unemployment claims, and consumer sentiment data, all of which will show important economic trends across different sectors. On Wednesday, the Fed will release the minutes from its last meeting, which will reveal the tone of the central banks. It is anticipated to be hawkish.

Earlier this month stock prices increased as a result of better than expected inflation numbers in October’s report. Investors however, are debating whether the rally has the strength to sustain itself or was just a dead cat bounce in light of remarks made by Federal Reserve officials. Furthermore, inflation is still above the Federal Reserve’s target, and the Treasury yield curve is still inverted (an indication of an impending recession). Although supply chain problems have eased, recovery is still far from complete. 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 present.

Potential Intraday Resistance Levels:
11/18/22 High of Day: $398.09
Previous Market Close: $396.03

Potential Intraday Support Levels:
200D SMA (4hr): $393.15
11/18/22 High of Low: $393.04

Note: Moving averages are reported from the previous trading session and will change during the next trading session. 

Monday Economic Events:
Chicago Fed Activity Index 8:30am ET

Fed Speaker Scheduled:
No Fed Speakers Scheduled

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