S&P 500 (SPY) Report – 6/22/22

Good morning traders!

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

The $SPY jumped 2.5% yesterday after the worst week in two years. Since yesterday’s close, the SPY filled the daily price gap between Friday’s $365.86 close, and Tuesday’s $371.89 opening price. Michael J. Wilson, the chief investment officer at Morgan Stanley said in a research note Tuesday that “the S&P 500 has yet to price in a full-blown economic recession. Wilson and his team stuck to their 3,400 end-of-year price target for the index, which represents a 10% drop from current levels, but also argued stocks could fall further in a recessionary scenario in which corporate earnings take a hit.” Micheal also noted that, “We don’t think 3,400 discounts a full-blown economic recession (i.e., an unemployment cycle). In our view, such an outcome would imply a much lower trough for the S&P 500 of ~2,900.” If Micheal and the team of strategists at Morgan Stanley are correct, this would mean the blue chip index still has another 23% to fall in the worst-case scenario. We advise everyone to size down, and trade with caution as the market could go either direction very quickly.

Potential Intraday Resistance Levels:
5D EMA (1Y:1D): $374.50
6/21/22 High of Day: 376.53
6/21/22 Market Close: 375.07

Potential Intraday Support Levels:
6/17/22 Low of Day: $362.17
6/16/22 Low of Day: $364.08
6/16/22 Market Close: $366.65

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
Redbook Sales 8:55am ET
API Crude Oil Data 4:30pm ET

Fed Speaker Scheduled:
Jerome Powell 9:30am ET
Charles Evans 12:50pm ET
Patrick Harker 1:30pm ET

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