S&P 500 (SPY) Report – 12/05/22

Good morning traders!

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

Stocks dropped on Friday as stronger than expected employment data seemed to raise doubts about the Fed’s decision to lower the interest rate increases later this month. Although there is always a lag with raising rates, the Fed’s rapid rate rises may not be having the anticipated impact. The central banks will have some new data to discuss at the December 13 and 14 meetings, and the rate hike decision is still up for debate. What the markets may see as negative news is ultimately positive for the economy. A recession is less likely with each month seeing an increase of more than 250,000 jobs. This is not to say the bear market is over as inflation still has a long way to go to reach the Fed’s target.

According to a Morgan Stanley analyst, the bear market rally is running into resistance levels that indicate it may be time to take profits. “While the index has modestly exceeded its 200-day moving average and the breadth continues to expand, the downtrend from the beginning of the year remains in place,” wrote Mike Wilson. 

Potential Intraday Resistance Levels:
12/03/22 Market Close: $406.91

Potential Intraday Support Levels:
200D SMA (1hr): $401.33

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

Monday Economic Events:
PMI Composite Final 9:45am ET
Factory Orders 10:00am ET
ISM Services Index 10:00am ET – High Volatility Expected
Investor Movement Index 12:30pm ET

Fed Speaker Scheduled:
No Fed Speakers Scheduled


DailyBubble’s Disclaimer
This article provided by the DailyBubble team should only be considered as informational and/or entertainment by the reader. DailyBubble makes no representation to buy or sell any security or financial instrument within the article. Readers seeking investment advice should seek independent financial advice from a professional, and independently research and verify. The DailyBubble team wrote this article and may express its own opinions therein.

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