S&P 500 (SPY) Report – 9/14/22

Good morning traders! 

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

The S&P 500 moved sharply lower yesterday, after worse than expected CPI data. When inflation started to appear, the Federal Reserve took a while to respond, and the markets moved too quickly for people to believe that officials had done enough to control it. The Fed needs to step up its game, and investors should temper their euphoria in light of the most recent reading, which indicates that inflation still remains strong across the board.

Concerns over ongoing inflation are so high that the likelihood of a 100-basis point increase from the Federal Open Market Committee (FOMC) next week increased from unlikely to 40%. Consumers who have endured two consecutive years of stagnant or decreasing family income in real terms find living difficult, even in a strong employment market. The rate of inflation is not always constant. In the UK, it decreased marginally in August from 10.1% to 9.9%, beating expectations, but the Bank of England believes it still has a long way to go.

Potential Intraday Resistance Levels:
EOD VWAP: $397.50
5D EMA (1Y:1D): $400.40

Potential Intraday Support Levels:
9/07/22 Low of Day: $ $390.20
9/06/22 Low of Day: $ $388.42

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
PPI 8:30am ET – High Volatility Expected
Atl. Fed Bus. Inflation Exp. 10:00am ET
EIA Petroleum Report 10:30am ET – High Volatility Expected

Fed Speaker Scheduled:
No Fed Speakers Scheduled

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