SPY
Chart done on hourly timeframe. Stocks wavered last week after data from the latest CPI and PPI reports showed inflation increased on both the consumer and producer index in January. The newly released inflation numbers are likely to guarantee that there will be no interest rate cut in the coming FOMC meeting, but this week’s Minutes Report will add more clarity to where Federal Reserve Members stand on interest rates. Also on watch this week will be earnings from Nvidia, Home Depot, and Walmart. Nvidia’s earnings are especially important because it has become the face of artificial intelligence, so its report will impact the entire industry.
Technical analysis:
Despite the sharp decline markets saw last week, most indexes managed to bounce back and close near their all time highs. So far the theme of this year has been “buy the dip” and buyers carried that same pattern last week. SPY in specific saw a sharp reversal at 490.75, which we’ve marked as a critical support on the chart. Buyers need to defend that level to avoid panic selling to the red zone. Resistance in focus is 503.50, which is all time high.