Good morning traders!
The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…
Yesterday The Federal Open Market Committee increased interest rates by 50 basis points, raising the federal funds rate to 4.25% and 4.5%, respectively. The markets did close lower following the announcement and Jerome Powell provided a reality check that inflation is far from over. Statements in the FOMC reported that “Recent indicators point to modest growth in spending and production. Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures. Russia’s war against Ukraine is causing tremendous human and economic hardship. The war and related events are contributing to upward pressure on inflation and are weighing on global economic activity. The Committee is highly attentive to inflation risks. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run,” the FOMC statement read.
Following the FOMC announcement, Federal Reserve Chair Jerome Powell spoke and said “I would like to underscore for the American people that we understand the hardship that high inflation is causing and that we are strongly committed to bringing inflation back down to our 2 percent goal. Over the course of the year, we have taken forceful actions to tighten the stance of monetary policy. We have covered a lot of ground, and the full effects of our rapid tightening so far are yet to be felt. Even so, we have more work to do. Price stability is the responsibility of the Federal Reserve and serves as the bedrock of our economy.”
With all of that said, numerous factors in the upcoming months will determine how much higher or lower rates will need to go and inflation still on going.
Potential Intraday Resistance Levels:
Mid Pivot Point: $400.52
9D EMA (1Y:1D): $398.57
11/14/22 Low of Day: $396.31
Potential Intraday Support Levels:
200D SMA (4hr): $393.63
Intraday Support : $391.50
Major Support Level: $390.00
Note: Moving averages are reported from the previous trading session and will change during the next trading session.
Thursday Economic Events:
Philly Fed Mfg Index 8:30am ET
Initial Jobless Claims 8:30am ET – High Volatility Expected
Retail Sales 8:30am ET – High Volatility Expected
Empire State Mfg Index 8:30am ET
Industrial Production 9:15am ET
Business Inventories 10:00am ET
EIA Natural Gas Report 10:30am ET
Fed Speaker Scheduled:
No Fed Speakers Scheduled
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