Good morning traders!
The S&P 500 ($SPY) is trading higher from yesterday’s close. Let’s get into it…
The S&P 500 closed up 0.66% yesterday, following Jerome Powell’s speech at the Cato Institute Monetary Conference. It will take some time before it is clear whether the latest bounce is the beginning of another bull cycle or the bounce before another leg down. On Twitter, SentimentTrader, a veteran trader with over 228,000 followers posted “Sometimes, there’s a chart that just blows your hair back. In 22 years of doing this, none stand out like this one.” SentimentTrader also noted that $8.1 billion worth of put options, or bets that stock prices will fall, were purchased compared to less than $1 billion in calls.“This is 3x more extreme than 2008,” SentimenTrader added.
In the news, Jerome Powell, the chairman of the Federal Reserve, stated yesterday that bringing inflation under control is a top priority for him and the other Fed executives. “I can assure you that my colleagues and I are strongly committed to this project and we will keep at it until the job is done.” The European Central Bank are also trying to keep up pace with the Fed, raising rates 0.75 percentage point. Central Bank officials are anticipated to hike interest rates by three-quarters of a point for the third time this year.
Potential Intraday Resistance Levels:
20D SMA (1Y:1D): $411.01
8/30/22 High of Day: $406.65
Potential Intraday Support Levels:
9/09/22 Market Close: $400.38
Mid Pivot Point: $399.51
5D EMA (1Y:1D): $397.58
Note: Moving averages are reported from the previous trading session and will change during the next trading session.
Friday Economic Events:
Wholesale Inventories 10:00am ET
Baker Hughes Rig Count 1:00pm ET
Fed Speaker Scheduled:
Charles Evans 10:00am ET
Esther George 12:00pm ET
Christopher Waller 12:00pm ET
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