Good morning traders!
The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…
The market has experienced a lot of volatility over the week as a result of many economic data releases and Federal Reserve speakers scheduled. The Fed’s preferred measure of inflation, which excludes volatile food and energy prices, slightly decreased but remains too high. However, personal incomes are still increasing, and in October, consumer spending which was also included in the PCE report, was at its highest level since June. That is encouraging news for the central bank. On Wednesday, Fed Chairman Jerome Powell gave a hint that he’s okay with this month’s interest rate hike being less than the recent string of 0.75 point moves. In contrast, a half point is still a significant amount by today’s standards.
This morning, the markets are trading lower as traders and investors digest stronger than expected job data. In November’s report, non-farm payrolls climbed by 263,000, above the 200,000 rise predicted by analysts surveyed by Dow Jones. Robert Schein, Chief Investment Officer at Blanke Schein Wealth Management said “Friday’s stronger-than-expected jobs report gives the Federal Reserve more reasons to continue raising interest rates and maintain tighter monetary policy for longer, at least until the labor market begins to weaken, which is a signal that the market does not want to hear right now.”
Potential Intraday Resistance Levels:
Market Close: $407.38
50D SMA (1hr): $405.67
Potential Intraday Support Levels:
200D SMA (1hr): $399.99
Note: Moving averages are reported from the previous trading session and will change during the next trading session.
Friday Economic Events:
Employment Report 8:30am ET – High Volatility Expected
Baker Hughes Rig Count 1:00pm ET
Fed Speaker Scheduled:
Thomas Barkin 9:15am ET
Charles Evans 10:15am ET
Charles Evans 2:00pm ET
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