S&P 500 (SPY) Report – 12/09/22

Good morning traders!

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

Markets are trading higher pre-market as traders look to close out a difficult week for domestic stocks, as concerns of a near-term recession and a pullback in Treasury yields caused for a lot of volatility. The tech industry is now firmly in cost-cutting mode after years of strong development and earnings. Some of the largest names in tech, like Twitter and Facebook, have chosen to engage in mass layoffs, while others, such as Amazon, have chosen to adopt a hiring freeze. Companies are showing an advertising revenue slowdown, as higher interest rates, and surging inflation have brought an end to the era of easy money. 

Of course, the tech industry is not the only one struggling with rising costs and difficult macroeconomic conditions. Like other food businesses, PepsiCo raised prices this year to offset rising expenses. However, the business stated in October that it was examining its own expenses in the event that revenue growth starts to slow down. According to the Journal, it is also eliminating hundreds of corporate positions. Cost-cutting and price hikes are the two key ways companies can try to counter 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 present.

Potential Intraday Resistance Levels:
Market Close: $396.24

Potential Intraday Support Levels:
Pre-Market Low: $392.75
200D SMA (4hr): $391.61

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

Friday Economic Events:
PPI-Final 8:30am ET – High Volatility Expected
Consumer Sentiment 10:00am ET
Wholesale Inventories 10:00am ET
Baker Hughes Rig Count 1:00pm ET

Fed Speaker Scheduled:
No Fed Speakers Scheduled

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