S&P 500 (SPY) Report – 12/21/22

Good morning traders!

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

U.S. markets are trading higher this morning as quarterly earnings from companies such as Nike and FedEx beat estimates and fueled confidence, despite the possibility of a recession. Nike shares rose 12% after the apparel company exceeded Wall Street’s profit and revenue forecasts for the quarter. FedEx rose 4.7% despite falling short of sales targets. The package service company outperformed average earnings per share projections. There are a few more large names to still report earnings results before the Christmas holiday, such as Micron, which will report after the close today. Earnings may revive hopes for an end of year rally.

As for the technicals pointing that the markets could hold support before the end of the year, the S&P 500 ETF broke above the 50D Simple Moving Average on a one hour chart this morning and appears to be holding support above $380. As of now, the week is far from over, with three trading days remaining until the holiday break, a lot may still happen. Furthermore, there are a few high volatility economic events on the schedule for today, and tomorrow being Q3 GDP results and Initial Jobless Claims. 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:
5D EMA (1Y:1D): $385.34

Potential Intraday Support Levels:
9D EMA (4hr): $382.39
50D SMA (1hr): $380.87
12/21/22 Market Close: $380.54

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

Wednesday Economic Events:
MBA Mortgage Applications 7:00am ET
Current Account 8:30am ET
Consumer Confidence 10:00am ET – High Volatility Expected
Existing Home Sales 10:00am ET – High Volatility Expected
EIA Petroleum Report 10:30am ET – High Volatility Expected

Fed Speaker Scheduled:
No Fed Speakers Scheduled

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