SPY Chart done on hourly timeframe. Markets struggled to hold a direction last week as uncertainty about inflation returned after higher than expected CPI data. Year over year consumer inflation ticked up to 3.4%, .3% higher than the previous reading, but producer side inflation ticked down by .1%. The mixed data, combined with mixed bank earnings, left the market about flat to end the week. Big banks reported earnings on Friday, but many of them missed profit expectations, with names like JPMorgan citing last year’s buyouts as the culprit. Most bank stocks closed lower on Friday as traders sold shares, fearing that falling rates will send bank profits lower in 2024. Economic reports slow down this week, but Fed members...
SPY Chart done on hourly timeframe. Market had a rough start to 2024 after the most valuable company in the world, Apple, received a stock downgrade to start off the year. Barclays unexpected move to downgrade the stock sent shares of Apple sharply lower and brought down major tech and indexes down with it. The downgrade was a rude-awakening to investors who have been riding the high of the bullish rally, and its timing to start off the year leaves many to question what kind of year markets will have. The uncertainty continued into Friday when the latest labor market report showed robust hiring in December, signaling a stronger than expected U.S. labor market. Not only did hiring grow, but...
SPY Chart done on hourly timeframe. The Federal Reserve sent markets higher last week after announcing their plan to lower interest rates by 75 basis point in 2024. The unexpected announcement caused a rally in global equities as it signaled that The Fed have “defeated” inflation and were successful in their economic soft-landing plan. Last week’s CPI data reinforced their decision by showing inflation reading at 3.1% compared to 3.2% the month prior. This week’s PCE report, which is The Fed’s preferred inflation gauge, will also give markets an update on inflation. October’s reading was 3.0%, so a reading below 3.0% for November will help boost markets as it will be closer to The Fed’s overall target of 2.0%. Retail...
SPY Chart done on hourly timeframe. What seemed impossible not too long ago is transpiring in the market as indexes head to their sixth week of consecutive gains. Buyers have propelled stocks to new 2023 highs, some even to new all time highs, but this week will be a big test as the final Fed meeting of the year is set to take place. The two day FOMC meeting is set for this Tuesday and Wednesday, The Fed will give an update on their stance on monetary policy and interest rates. According their most recent Beige Book Report, members of The Fed are all in agreement that their interest rate decisions will be based on economic reports and ongoing developments....
SPY Technical Analysis & Weekly Stock Market Update Markets roared higher last week, extending their already impressive November rally into the first week of December. The spotlight was around small cap stocks as capital rotated out of select large cap names and into stocks within the Russell 2000 index (IWM), which has lagged behind the S&P 500 and The Dow in 2023. Traders and investors are always quick to buy large cap and fundamentally strong companies during market rebounds, but eventually, as these companies reach overbought levels, savvy traders turn to different areas of the market where capital hasn’t flowed yet. We’re expecting this kind of capital rotation to continue through the end of 2023 and into 2024, many stocks...
