SPY Chart done on hourly timeframe. We have a shortened trading week ahead as markets will be closed in recognition of Juneteenth on Monday. Historically we’ve seen markets trade with lower volume after a three day weekend so the week may start off with a consolidation session as everyone gets back into rhythm. Markets are awaiting May’s housing data and the PMI reading this week, but the main event is Powell’s semiannual monetary policy testimony before congress. Powell’s testimonies and addresses usually create increased volatility in the market, we’ll be watching the VIX index to monitor volatility activity. Increased volatility can inflate option pricing, which is something to note for short term option traders. Technical analysis: Many names and indexes...
SPY week 06.12.2023-06.16.2023: Chart done on hourly timeframe. The S&P 500 reached a fresh new 2023 high last week and entered bull market territory. Stocks across different sectors moved higher, but last week in particular we saw small cap companies in the Russell 2000 Index begin their push. Most of the recent rally has been attributed to the move in a few large cap tech stocks, which alone can’t sustain a bull market, so seeing capital flowing into other sectors and industries is a good sign. Traders enjoyed a week of little to no critical economic data, which also helped the market rally, but this week is loaded with key reports and meetings. Fresh inflation numbers are expected this...
SPY Chart done on five minute and daily candles. Market volatility declined to end the week last week, but SPY’s volume saw an increase again following the Federal Reserve’s action to raise rates by 25 BPS. The long-awaited decision was a surprise to many considering the recent bank headwinds the world economy has been facing, but Powell’s comments about U.S. banks were positive. Powell reassured investors that The Fed is overseeing banking conditions and will be ready to assist if needed to keep depositors safe. During that same time as Powell’s conference, Treasury Secretary Janet Yellen said she potentially may not insure all banking deposits to depositors in failed banks. The opposing comments from Powell and Yellen sent stocks on...
