Good morning traders!
The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…
The much-anticipated Santa Rally in December has turned into a lump of coal. Since November 30th, the S&P 500 has fallen by more than 4%, and the end of the year is not looking promising. Powell delivered the opposite of good cheer at the year’s final rate decision, with estimates predicting interest rates rising considerably and remaining there next year. This overshadowed the slower rate of increase in interest rates in the future.
In the news, Christine Lagarde, President of the European Central Bank, was surprisingly hawkish this week, suggesting that the upcoming economic slowdown will be shallow and that the ECB has no intentions to shift course anytime soon. Even while the Fed and the ECB were relatively optimistic about the impact of rate rises on the economy, traders seemed to interpret the message in only one way: sell stocks.
Potential Intraday Resistance Levels:
9D EMA (4hr): $389.50
Market Close: $387.84
Potential Intraday Support Levels:
Pre-Market Low: $382.50
Support Level: $380.00
Note: Moving averages are reported from the previous trading session and will change during the next trading session.
Friday Economic Events:
PMI Composite Flash 9:45am ET
Baker Hughes Rig Count 1:00pm ET
Fed Speaker Scheduled:
Mary Daly 12:00pm ET
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.